Assessing CSR and Applying Social Life Cycle Assessment: A case

Transcription

Examensarbete i Hållbar Utveckling 82
Assessing CSR and Applying Social Life Cycle
Assessment: A case study on Biochemical Oxygen
Demand Online Monitor
He Wan
He Wan
Uppsala University, Department of Earth Sciences
Master Thesis E, in Sustainable Development, 30 credits
Printed at Department of Earth Sciences,
Geotryckeriet, Uppsala University, Uppsala, 2012.
Master’s Thesis
E, 30 credits
Examensarbete i Hållbar Utveckling 82
He Wan
Content
1.
2.
Introduction .................................................................................................................................... 1
1.1
Project Background ............................................................................................................. 1
1.2
Purpose ................................................................................................................................ 2
1.3
Delimitations ....................................................................................................................... 2
1.4
Thesis Structure ................................................................................................................... 3
Conceptual Framework ................................................................................................................. 3
2.1
Sustainable Development .................................................................................................... 3
2.2
Business CSR Level ............................................................................................................ 5
2.3
3.
2.2.2
CSR Level 2 ............................................................................................................... 7
2.2.3
CSR Level 3 ............................................................................................................... 8
Social Life Cycle Assessment .............................................................................................. 9
2.3.1
Definition of Goal and Scope..................................................................................... 9
2.3.2
Life Cycle Inventory Analysis ................................................................................. 11
2.3.3
Life Cycle Impact Assessment ................................................................................. 12
2.3.4
Interpretation ............................................................................................................ 12
Research Approaches ......................................................................................................... 13
3.1.1
Inductive Approach .................................................................................................. 13
3.1.2
A Case Study Approach ........................................................................................... 13
3.1.3
Qualitative and Quantitative Approach .................................................................... 14
3.2
Data collection ................................................................................................................... 15
3.3
Trustworthiness.................................................................................................................. 15
Empirical Findings and Analysis ................................................................................................ 16
4.1
4.2
5.
CSR Level 1 ............................................................................................................... 6
Methodology and Research Design ............................................................................................. 13
3.1
4.
2.2.1
Corporations’ CSR level .................................................................................................... 16
4.1.1
Boffin Company....................................................................................................... 17
4.1.2
Universtar Science & Technology (Shenzhen) Co.LTD .......................................... 19
4.1.3
Discussion ................................................................................................................ 21
SLCA on BOD online monitor .......................................................................................... 22
4.2.1
Definition of Goal and Scope................................................................................... 22
4.2.2
Life Cycle Inventory ................................................................................................ 27
4.2.3
Life Cycle Impact Assessment ................................................................................. 27
4.2.4
Interpretation ............................................................................................................ 30
Conclusion..................................................................................................................................... 35
5.1
Corporations’ CSR level .................................................................................................... 35
5.2
SLCA on BOD online monitor .......................................................................................... 36
5.3
Overall Purpose ................................................................................................................. 37
5.4
Future research .................................................................................................................. 38
6.
Acknowledgements ....................................................................................................................... 38
7.
Reference....................................................................................................................................... 38
I
Abbreviations
BOD
Biochemical Oxygen Demand
CSR
Corporate Social Responsibility
ELCA
Environmental Life Cycle Assessment
GRI
Global Reporting Initiative
ISO
International Organization for Standardization
LCI
Life Cycle Inventory
LCIA
Life Cycle Impact Assessment
NGO
Non-governmental Organization
SETAC
Society for Environmental Toxicology and Chemistry
SLCA
Social and socio-economic Life Cycle Assessment
TBL
Triple Bottom Line
TQM
Total Quality Management
TRM
Total Responsibility Management
UNEP
United Nation Environment Programme
WCED
World Commission on Environment and Development
II
Assessing
CSR
and
Applying
Social
Life
Cycle
Assessment ： A case study on Biochemical Oxygen
Demand Online Monitor produced
HE WAN
Wan, H., 2012: Assessing CSR and Applying Social Life Cycle Assessment：A case study on
Biochemical Oxygen Demand Online Monitor. Master thesis in Sustainable Development at Uppsala
University, No. 82, 68pp, 30 ECTS/hp
Abstract: Wuhan China and Borlänge Sweden collaborate to promote sustainable business growths.
This thesis, being part of sustainable business project, aims to understand how business can contribute
to sustainable development and explore mechanisms of social life cycle assessment. In an effort to
answer research questions and further to achieve the general purpose, a BOD online monitor case study
is described and analyzed by applying both qualitative and quantitative approaches. Data collection is
based on interviews and documents. In the case of BOD online monitor, the thesis identifies Boffin and
Universtar companies’ CSR levels. It also observes that SLCA method is able to discover Boffin and
Universtar’s social performances at life cycle impact assessment stage and disclose online monitor’s
social impacts at interpretation stage. The thesis finally concludes that business’ CSR level can be
evaluated from three dimensions: companies’ goals on conducting business, business operation
performances and resolved problems. SLCA method is able to disclose enterprises’ social performances,
discover underlying factors that might hinder corporations’ ability to contribute to sustainable
development and improve product’s social at the same time.
Keywords: Sustainable Development, Corporate Social Responsibility, Social Life Cycle Assessment,
BOD Online Monitor, Social Impact Assessment, Social Performances
He Wan, Department of Earth Sciences, Uppsala University, Villavägen 16, SE- 752 36 Uppsala,
Sweden
III
Assessing
CSR
and
Applying
Social
Life
Cycle
Assessment ： A case study on Biochemical Oxygen
HE WAN
Wan, H., 2012: Assessing CSR and Applying Social Life Cycle Assessment：A case study on
Biochemical Oxygen Demand Online Monitor. Master thesis in Sustainable Development at Uppsala
University, No. 82, 68pp, 30 ECTS/hp
Summary: Companies, at present, should not only look at profits and costs, but also are expected to
take social responsibilities. However, there are not consolidated statements on what kinds of companies
are deemed as having social responsibilities and how they can be more responsible. In addition, social
life cycle assessment, as a tool to evaluate a product’s social impacts throughout its life cycle, is
encouraged to conduct case studies. This thesis, therefore, aims to understand how business can
contribute to sustainable development and explore mechanisms of social life cycle assessment. The
thesis identifies and divides business CSR levels into three levels in conceptual framework chapter.
Business CSR levels are evaluated from three dimensions: conceptual framework, process and end goal.
And then, the thesis assesses companies’ business CSR levels and explores social life cycle assessment
by conducting a BOD online monitor case study. Both qualitative and quantitative approaches are used
to describe and analyze the case study. Data collection is based on interviews and documents. The
BOD online monitor case shows that Boffin and Universtar companies recognize sustainable business;
however, they are weak in implementing goals. Boffin is weaker in corruption part, while Universtar
needs to improve its performances from health and safety of working conditions and local employment
aspects. The BOD online monitor has negative impacts on the governance aspect in designing process.
The negative effect of corruption value was the reason why BOD online monitor has negative impact
on governance. It concludes that business’ CSR level can be evaluated from three dimensions. SLCA
method was able to disclose enterprises’ social performances, discover underlying factors that might
hinder corporations’ ability to contribute to sustainable development and improve product’s social at
the same time.
Keywords: Sustainable Development, Corporate Social Responsibility, Social Life Cycle Assessment,
BOD Online Monitor, Social Impact Assessment, Social Performances
He Wan, Department of Earth Sciences, Uppsala University, Villavägen 16, SE- 752 36 Uppsala,
Sweden
IV
1. Introduction
Companies in the thesis are Hubei Boffin
Biological technology Co. Ltd and Universtar
Cheap labour force is a key factor for Chinese
Science &Technology Company. The product is
economic explosion. Many manufacturers focus
porous ceramic BOD (biochemical oxygen
on companies’ costs and benefits, products’
demand) online monitor, which is independently
qualities and customers’ needs. They do not take
developed by Boffin and produced by Universtar.
environmental impacts into consideration, not to
Biochemical Oxygen Demand (BOD) is the
mention talking about social performances and
amount of dissolved oxygen required by
impacts. This economic growth leads to serious
microorganisms to decompose organic material
social problems that a majority of companies
in water in a given condition. It is used as an
rely on cheap labour force and ignore employees’
important indicator for measuring the degree of
human right. One typical example is the
water pollution. BOD online monitor is a
‘Foxconn employee suicide events’. Foxconn,
product designed to monitor and test BOD value
the world’s largest multinational electronics
of water. The porous ceramic is utilized to fix
manufacturer, is expected to maintain high
microorganism
standard of social corporation responsibility. In
concentration and dilute organic components in
contrast, it is deemed as a ‘sweat factory’ for the
the sample water within a short period of time.
fact
same
The product examines BOD value of the
manufacturing plant in China committed suicide
assigned water discontinuously and this value is
within 2 years (CNR, 2012). This tragedy
conveyed to the environmental monitoring
enlightens all citizens and corporations that
center through a network on an hourly basis. The
Chinese should rethink about business and
relative error of this product is no more than 3%.
corporations.
Compared to other tests as the conventional
that
14
employees
from
the
media,
increase
microbial
5-day test, BOD online monitor can achieve
1.1
real-time monitoring and process control (Di
Project Background
Lorenzo et al, 2009).
On September 7, 2011, an agreement on friendly
exchange and communication programs in
According to Johnson (2007, p12), sustainable
2012-2014 between Wuhan China and Borlänge
development issues have to learn from CSR in
Sweden
sustainable
terms of social parts. How can corporations
development as a leading star throughout two
taking social responsibilities so as to be more
cities’ cooperation. Wuhan and Borlänge seek
sustainable? That is a question I like to
collaborations in the fields of environmental
investigate. Nevertheless, people may have
sustainable development and business connected
diverse cognitions on how corporations taking
to environmental issues. A thesis project in
social responsibilities. One famous argument is
sustainable business field that aims to explore
that the only social responsibility of business is
corporations’ social behaviors in Wuhan city is
to
under planning in 2012. This study, being part of
Corporate executives’ responsibility is to make
the project, evaluates companies’ corporation
large amount of money for their employers.
social responsibility (CSR) level as well as
Executives who are not pursuit for profits work
utilize social life cycle assessment method to
for non-profit organizations (Friedman, 1970).
explore corporations’ social performances and
This point of view, however, is criticized that
product’s social impacts on Wuhan city, China.
Friedman oversimplified
was
reached
with
1
increase
its
profits
(Friedman,
1970).
business and
the
importance of ethics for conducting business
not used in many case studies (Hunkeler, 2006;
(Grant,
have
Andrews et al., 2009; Blom & Solmar, 2009).
commitments to their internal and external
UNEP/SETAC (2009) encourages conducting
stakeholders and provide values in a sustainable
case studies with social life cycle assessment
way (Branco & Rodrigues, 2007; Svensson et al,
(SLCA) method. As a result, I intend to explore
2010). Another statement is that companies are
SLCA through a case study.
1991).
Companies
should
expected to extend responsibilities from supplier
chains to customers (Isaksson et al., 2010).
1.2
Companies should not only look at profits and
Purpose
costs, but also bear social responsibilities of
The purpose of this thesis is understand how
caring employees and assessing sustainable
business
impacts, evaluate the suppliers’ performances
development and explores the mechanisms of
and require suppliers to meet basic social
social life cycle assessment. In the direction of
requirements as well. Since there is not a
accomplishing the purpose, following research
consolidated statement on what companies are
questions are ought to be answered:
deemed as having social responsibilities and
1.
how they can be more responsible, in the thesis,
can
contribute
to
sustainable
How can a business’ CSR level be
assessed?
I intend to answer this question by identifying
2.
companies’ CSR levels.
How
can
the
social
life
cycle
assessment method be used to disclose
enterprise’ social performances and
Furthermore, social life cycle assessment (SLCA)
factors
method is an evaluation tool that can be used to
development?
analyze a product’s social impacts and its
3.
that
hinders
sustainable
How can social life cycle assessment be
producers’ social performances. A product
used
to
influences on the society is reflected by
impacts?
improve
product’s
social
companies’ performances (Dreyer et al., 2006);
therefore, how companies affect society equals
1.3
to the product’s social impacts. It exceeds
Delimitations
current standard of CSR which mainly limits to
The thesis aims to explore corporations’ business
one single company (UNEP, 2009). The present
CSR levels from sustainable development view.
standard of CSR mainly tackles social impacts at
Corporations in here refer to companies that
the enterprise level while social life cycle
make for profits. Hence, not for profits
assessment includes a product’s whole life cycle
companies are excluded for the study.
process including company, plant and process
levels (Benoit et al., 2010). Having similar
This thesis only evaluate BOD online monitor
procedures to LCA, SLCA methodfocuses on
that developed by Boffin. BOD online monitors
social impacts and is developed from a societal
produced by other companies are not included.
perspective instead of analyzing physical flows
(Dreyer et al., 2006). There are some articles
Moreover, social performance has the same
about explaining social life cycle assessment’s
meaning of social impact in the thesis. To
meaning,
discover
methodologies,
framework
and
measurement (Dreyer et al., 2006; Jørgensen et
corporations’
social
performances
means to explore companies’ social impacts.
al., 2008; Jørgensen et al., 2010; Benoît et al.,
2010; Parent et al., 2010), but SLCA method is
Admittedly, companies also are expected to be
2
responsible for protecting environment and take
chapter, comprising of research approaches, data
economic responsibilities. In this thesis, I will
collection and trustworthiness etc.
not focus too much on environmental and
economic parts. The thesis emphasises on
Chapter 4–
evaluating corporations’ social performances and
empirical case study of BOD online monitor is
product’s
stakeholders.
conducted to explore companies’ CSR levels and
Specific economic and environmental data, such
interpret how social and socio-economic life
as revenues, taxes, CO2 emissions etc., will not
cycle assessment method is used for disclosing
be presented.
enterprise’ social performances and discovering
social
impacts
on
Empirical
Case
Study:
an
factors that hindering sustainable development
It increases uncertainties if the thesis accepts all
achievements. The first part of this chapter
information
Nevertheless,
analyses two companies’ business CSR levels on
considering some companies may not publish
the basis of sustainable development concept.
CSR reports or have formal annual reports, I will
After that, social life cycle assessment method is
assume that information from those companies
utilized for identifying positive and negative
and employees is creditable and reliable in this
social impacts of both companies and product
thesis.
specifically at company and site level.
The thesis also has limitations. There is only one
Chapter 5–Conclusion: structure of the study is
case study, which is a very small sample
summarized and key findings are demonstrated.
compared to the whole BOD online monitor
Contributions of the study and suggestions of
industry. Hence, the result is only applicable in
future research are also shown in this chapter.
from
companies.
this case and cannot reflect enterprises in the
whole BOD online monitor industry.
1.4
2. Conceptual Framework
Thesis Structure
Chapter 1 – Introduction: Introduction chapter
2.1
illustrates current Chinese business situation and
Sustainable development, which is widely
project background. It defines overall purpose of
recognized in 1987 through Our Common Future,
the thesis and proposes research questions. In the
is defined as “development that meets the needs
meantime,
of the present without compromising the ability
it
also
indicates
the
study’s
delimitations and limitations.
Sustainable Development
of future generations to meet their own needs”
(WCED,
1987,
p43).
In
this
definition,
Chapter 2–Conceptual framework: this part
sustainable development not only focuses on
reviews sustainable development concept at first.
economic growth, but also concerns about
After that, it demonstrates CSR levels according
generational equity and utilizations of natural
to sustainable development concept and people’s
resources. The report indicates that economic
cognitions
social
growth should on a basis of using resources
cycle
sustainably and efficiently. Nevertheless, WCED
on
responsibilities.
corporation’s
Further,
social
life
assessment is elaborately described.
committee limits this definition to sustaining
human existence and intergenerational equity
for
(Johnson, 2007; Kates et al, 2005). Another
conducting the thesis are explained in this
criticism of this report is that goals are too
Chapter
3–Methodology:
methods
3
ambiguous to find applicable answers. The
largely adopted by national governments (United
report admits that we should take measures to
Nations Division of Sustainable Development,
mitigate environment deteriorating problems, but
2001), whereas the Global Reporting Initiatives
it does not offer concrete resolutions on how we
selects indicators to evaluate how corporations
can reach sustainable goals (Gilbert, 2002).
affect sustainable development at organizational
level (Kates et al, 2005).
Three-pillar-model of sustainability, namely
triple bottom line (TBL), is an appropriate
In
framework formulated
interpreted in various means. Our common
Summit
in
1997,
at
the
which
Copenhagen
narrows
down
conclusion,
future
report
sustainable
and
development
three-pillars-model
is
of
sustainable development concept and promotes
sustainability are more like guiding principles
sustainable development from three dimensions:
that
environmental, social and economic aspects
framework. The second way of understanding
(Herrmann et al.). The Johannesburg Earth
sustainable development is to measure if
Summit on Sustainable Development (2002)
sustainable goals have been achieved by various
declared to achieve three-pillar sustainability at
indicators. It applies sustainable principles to
multiply degrees, such as local level, country
specialized evaluating approaches and facilitates
level, regional level and global level.
the
structure
a
conceptual
decision-making
process.
sustainability
Sustainable
development is deemed as a process of changes
Sustainable development goals, clarified in this
rather a static state (Roome, 1998). It forces us
conference, needs to be assessed and achieved
to discover factors influencing the long-term
by
the
benefits instead of emphasizing on transitory
three-pillar-model is still criticized for being
profits. Sustainable development, at the same
difficulty of measuring sustainable performances
time, aims to reach a collective and integrated
(Norman & MacDonald, 2004). Researchers are
society improvement on the same progressive
inclined to deem triple bottom line as a reminder
path (Strange & Bayley, 2008). The third way is
rather than an accounting tool (Pava, 2007;
to define sustainable development on the basis of
Johnson, 2007). Those researchers who intend to
diverse practices. After evaluating and analyzing
carry on sustainability assessment are based on
on account of given indictors, different societal
the principle of triple bottom line but refine
stakeholders are able to identify specific
indicators on basis of their recognitions and
problems and reach practical solutions according
empirical cases under each dimension (Atkission,
to their own roles and responsibilities (Kates et
1999; Hardi & Zdan, 1997; Swisher et al., 2003;
al, 2005; Strange & Bayley, 2008).
integrated
ways.
Nonetheless,
Beheiry, 2009).
Strange and Bayley (2008, p30) displayed a
Sustainable assessment results are influenced by
clear
geographic
scopes,
sustainable development that includes the above
indicators and how indicators are selected;
three levels of sustainable development, and I
therefore, sustainable development can be
will
defined on basis of how to measure it (Wilson et
Sustainable development according to Strange
al., 2007; Wallis et al., 2011; Kates et al, 2005).
and Bayley (2008, p30) is that:
positions,
dimensions,
For instance, the set of indicators in the UN
and
use

well-organized
this
explication
description
in
this
of
thesis.
A conceptual framework: a way of
Commission on Sustainable Development are
changing the predominant world view
applicable to country-specific conditions and
to one that is more holistic and
4


balanced;
corporations (Friedman, 1970; Lantos, 2001).
A process: a way of applying the
Friedman (1970) argues a corporate executive
principles of integration – across space
has direct responsibility to his/her employers. If
and time – to all decisions; and
an executive do something employer may not
An end goal: identifying and fixing the
interest, it means that the executive spend
specific problems of resource depletion,
customers’ or employees’ money to achieve
health care, social exclusion, poverty,
social responsibilities. Of course corporations
unemployment, etc.
may
provide
employees
good
working
conditions and contribute to charities in practice;
Aiming to achieve sustainability from processes
however, these actions are to attract employees
of explications shown above, a sustainable goal
and long-term profits other than for ethics
is identified at first, followed by choosing or
reasons (Carr, 1968; Friedman, 1970). This point
creating measuring indicators, and end with
of arguments is more like a profit-making view
identifying specific problems (Kates et al, 2005).
that maximizes business profits (Branco &
Considering sustainable development is an issue
Rodrigues, 2007).
related
to
various
stakeholders,
such
as
government officials, business leaders, scientists,
However, corporations as one major actors in the
environmentalists,
economists,
society, their tasks cannot merely be seen as
non-governmental organizations (NGOs) as well
provide goods and services. Carroll (1991)
as individuals, each stakeholder plays a different
asserts that companies should not have economic
role to achieve sustainability. As demonstrated
dimension, but also have other responsibilities,
above, sustainable development can be deemed
such
as a process of changing. In this thesis, I will
dimensions. Good corporation citizens at first
focus on understanding business CSR-level from
should make their business profitable and these
a sustainable development perspective. That is to
acts should obey laws (Carroll, 1998). The
say, I try to relate sustainable thinking to
higher dimensions of good corporations include
business practices. I will analyze companies’
being ethical and making corporate contributions
business levels with questions in mind: if I look
(Carroll, 1998). There are also an increasing
at companies’ CSR practices from a sustainable
number of social organizations appealing to
point of view, what business performances and
corporations to take social responsible actions,
behaviors can be deemed as sustainable? Which
such as protecting environment, doing well to
companies can be seen as have higher CSR level?
employees
I will firstly interpret business CSR level from a
companies to spend part of profits on improving
sustainable development perspective and discuss
the society as well (Uddin et al, 2008). Namely,
in the subsection.
companies are forced to have other social
as
legal,
and
ethical
etc.
and
philanthropic
Consumers
expect
responsibilities other than single economic
2.2
profitability.
Business CSR Level
Companies are required to be responsible at
The
present, however, which performances and
responsibility reports indicate that companies
characters can be deemed as real good social
now
responsible are controversial. For the early stage,
responsibilities. Many companies report their
there are people regarding maximum profits to
CSR report annually to present a transparent
shareholders as the single responsibility for
business performance to the public (CSRwire,
5
proliferation
have
of
conscious
corporate
of
taking
social
social
2012). Nevertheless, society requires companies
the neoclassical economic theory that is often
to be more social responsible that also reporting
deemed as a profit-making view. It implies that
their suppliers to date. A brand does not only
business should maximize shareholders’ profits,
equal to a product, but also contain how to make
have lower ethics standards than the society and
the product, the suppliers of the product and how
do not have any other social responsibilities
to
2009).
except obeying mandatory laws (Lantos, 2001).
total
Classical business’s notions include free markets,
responsibility management approach throughout
economic efficiency and profit maximisations
supply chain (Waddock & Bodwell, 2004).
(Branco & Rodrigues, 2007). From this point of
transport
Enterprises
the
are
product
encouraged
(Mulani,
to
take
view, company’s exclusive responsibility is to
On the account of sustainable development
make profits for its shareholders (Friedman,
concept and arguments described above, I decide
1970; Sundaram & Inkpen, 2004). Managers in
to divide business CSR into three levels:
CSR
the company are required to make money as
level 1, CSR level 2 and CSR level 3.
much as possible for its shareholders and social
Companies having a higher CSR level perform
problems are governments’ responsibilities that
better on society than their counterparties’ who
are beyond mangers’ duties (Friedman, 1970;
have a lower CSR level. To be more specific,
Branco & Rodrigues, 2007).Interactions between
corporations at level1 run a business that putting
companies and stakeholders are considered to be
emphasis on profitability. Companies in the
factors
second level commit to be responsible to their
(Coelho et al., 2003).
hindering
corporations’ profitability
related stakeholders. The third level not only
requires companies themselves to undertake
CSR level 1, in my opinion, does not match with
corporate responsibilities, but also expands the
sustainable development concept. For this kind
requirements to companies’ suppliers.
of business, entrepreneurs chase profits and
ignore
environment
and
social
equities.
As mentioned before, the thesis describes
Companies which improving products’ qualities,
sustainable development from three dimensions:
inventing
conceptual framework, process and end goal
efficiently are not for environmental or social
(Strange and Bayley, 2008). The conceptual
concerns, but mainly for lowing costs and
framework of business is to evaluate companies’
increasing profits. In conclusion, companies that
principles on conducting business. The process
utilize classic view to run a business includes
means how companies apply principles into
characters shown below:
business operations. The end goal is to know

techniques
and
using
resource
A conceptual framework: Companies
which specific problems companies have fixed.
ignore sustainability and only obey
Hence, I would like to present CSR levels from
labour, environment related laws and
the three dimensions. In that way, I can disclose
regulations. Laws and regulations that
corporations’ CSR level in a more clear way. I
contributes to external society are
can find out if a company is at a high CSR level
regarded as obstacles and costs for
for all three dimensions or it performs better in a
companies (Lantos, 2001; Coelho et al.,
particular dimension.
2003);

A process: Shareholders as companies’
2.2.1 CSR Level 1
owners utilizetraditional bottom line of
The first level of CSR is conventional business.
profitability
The classic viewpoint on business is based on
business(Friedman, 1970); managers
6
to
operate

take responsible for making money for
UNEP/SETAC (2009) indicates that CSR is a
shareholders and have no right to make
responsibility that companies contribute to
any other decisions or use companies’
sustainable development. Commission of the
resources which cannot directly lead to
European Communities (2001, p366) defines
profits (Friedman, 1970; Branco &
CSR
Rodrigues, 2007); and
integrate social and environmental concerns in
An end goal: Companies’ role is to
their business operations and in their interaction
produce wealth and not necessary to
with their stakeholders on a voluntary basis”.
take responsible for social problems
This definition implies that CSR is a company’s
they
business
voluntary behaviours so as to achieve economic
operations. Social problems should be
growth, social development and environmental
addressed
governments
consideration simultaneously. Commission of
(Friedman, 1970; Branco & Rodrigues,
the European Communities (2001) further
2007).
distinguishes CSR into internal and external
produce
by
during
public
as
“a
concept
whereby
enterprises
dimensions. Internal dimension of CSR are
2.2.2 CSR Level 2
responsible practices within a company, while
The famous definition of corporate social
external dimension are responsibilities that go
responsibility (CSR) is demonstrated from
beyond
stakeholder theory. It implies that companies
European Communities, 2001). Internal CSR
should consider all stakeholders whose rights
practice include: human resources management,
benefit from or are harmed by corporate
health and safety at work, adaption to change
behaviours
2007;
and management of environmental impacts and
Freeman, 1998). Apart from shareholders,
natural resources, whereas practices of local
stakeholders also include creditors, employees,
communities, business partners, suppliers and
customers,
consumers,
(Branco
suppliers,
&
Rodrigues,
communities
and
a
company
(Commission
human
rights
of
and
the
global
governments (Branco & Rodrigues, 2007). I
environmental concerns belong to external
select five elements listed by Buchholz (1991) to
dimension
identify CSR: a) companies are not only
Communities, 2001).
(Commission
of
the
European
responsible for making products and providing
services with the express purpose of profits; b)
According to Vogel (2005) and Johnson (2007),
but also should help to solve significant social
corporate social responsibility is more than an
problems, especially which are created by
ethics matter, but expands to a holistic
companies themselves; c) companies should be
understanding of business relating with ethics,
responsible for their stakeholders rather than
social and environmental concerns. However, in
only focusing on shareholders; d) companies not
the meantime, we could not expect companies to
merely affect simple marketplace transactions; e)
get
companies should not only serve economic
improvement
values, but also add other human values.
(Hopkin, 2002). A transition from conventional
involved
business
to
in
every
or
sustainable
taking
aspect
of
social
development
corporate
social
However, the above explications of CSR fail to
responsibilities never means that companies do
include sustainable development values directly.
not seek profits for their shareholders; in contrast,
They also fail to notice companies’ voluntary
enterprises
actions. When it comes to the interrelation
environmental
between CSR and sustainable development,
simultaneously (Roome, 1998). Carroll (1991)
7
embed
economic,
values
into
social
and
operations
also noted that the fundamental requirement of a
2001), it fails to notice the importance of
responsible enterprise is profit-making, and then
integrations
is to be legal, ethical and philanthropic. This is a
corporations and supply chains. Companies
business strategy shifting from traditional single
report their CSR report on the basis of a series of
bottom line of profitability to triple bottom line
CSR ratings and rankings annually (Porter &
of society, economy and environment. To sum
Kramer, 2006). An enterprise’s CSR report
up, characters integrating with sustainable
might include information of health and safety at
development concept for CSR level 2 in this
work from its suppliers and subcontractors, but
thesis include:


collaborations
among
the report would not disclose suppliers and
A conceptual framework: companies
subcontractors’ working conditions in details.
recognize sustainability and voluntarily
Since consumers’ values are created through
embed social and environmental values
supply chain, companies are expected to extend
into business operations (Commission
their responsibilities from suppliers to customers
of the European Communities, 2001);
to date (Isaksson et al., 2010). Companies at
A process: managers take shareholders
CSR level 3 take total responsibilities which
as well as other stakeholders into
including inspiration, integration and innovation
account (Branco & Rodrigues, 2007;
aspects (Leigh & Waddock, 2006). Enterprises
Buchholz, 1991); companies take social
are able to take total responsibility management
responsibility that not just satisfy the
(TRM)
traditional bottom line of profitability,
improvement to audit external suppliers and
but also include two other bottoms of
learn from past mistakes (Waddock &Bodwell,
environmental quality and social justice
2004).
(Elkington,

and
1997);
a
series
approach
and
organizational
of
responsible practices are conducted in
American Management Association (2007) lists
internal as well as external dimensions
seven qualities of a sustainable enterprise,
(Commission
including top-management support, centrality to
of
the
European
Communities, 2001);
business strategy, values, metrics, stakeholder
An end goal:Companies seek profit for
engagement,
shareholders, but also are in favor of
organizational integration. Companies at CSR
society
stakeholders
level 3 should have these qualities. Top
European
management support means that chief managers
and
its
(Commission
of
the
systems
alignment
and
Communities, 2001); enterprises solve
recognize
problems they created voluntarily, such
development
as health care, human rights, social
Association,
exclusion and etc. (Buchholz; 1991).
sustainability, which is regarded as a central
and
support
for
(American
2007).
In
sustainable
Management
the
meantime,
business strategy, is integrated and measured in a
2.2.3 CSR Level 3
company
Admittedly, compared to the level 1, companies
Association, 2007). Both external and internal
at CSR level 2 are more sustainable. However,
stakeholders of a company participate in
even though EU commission declares that
sustainable issues, whilst structures, systems and
enterprises should be responsible for their
processes are associated with sustainability
suppliers’ and tractors’ performances in terms of
within
human
Management
rights
and
environmental
aspects
(Commission of the European Communities,
level
the
(American
enterprise
as
Association,
Management
well
(American
2007).
Since
sustainable development is a holistic concept,
8
organizations are required to integrate and
boundary
collaborate to achieve sustainability (American
customers as a whole (Benoît et al, 2010).
Management Association, 2007).
Distinguished
to
include
from
supply
other
chains
social
and
impact
assessment methods, social life cycle assessment
Based on illustrations shown above, several
is an approach for evaluating the product or
characters for sustainable enterprises are listed
service’s social impacts throughout its entire life
below:
cycle and enables enterprises to make decisions


A conceptual framework: Sustainability
(UNEP/SETAC,
is deemed as companies’ strategic goal
socio-economic life cycle assessment (SLCA) is
and integrated in enterprises’ vision
defined as “is a social impact (and potential
(American Management Association,
impact) assessment technique that aims to assess
2007);
the social and socio-economic aspects of
A process: Companies extend their
products and their potential positive and
responsibilities from their suppliers to
negative
their customers as a whole, and have a
encompassing extraction and processing of raw
total responsibility strategic decision
materials; manufacturing; distribution; use;
(Isaksson et al., 2010; Waddock &
re-use;
Bodwell,
disposal”(UNEP/SETAC, 2009)
2004);
Companies
have
2009).
impacts
maintenance;
A
along
social
their
recycling;
and
lifecycle
and
final
qualities of top-management support,

centrality to business strategy, values,
It is a complementary part of environmental life
metrics,
engagement,
cycle assessment in terms of social and
systems alignment and organizational
socio-economic aspects and can be followed
integration
with similar procedures as an environmental life
stakeholder
(American
Management
Association, 2007);
cycle assessment (ELCA), including stages of
An end goal: companies collaborate
goal and scope, life cycle inventory, life cycle
with stakeholders to achieve sustainable
impact
goals
dimensions.
(UNEP/SETAC, 2009). I will utilize SLCA as
Stakeholders such as society, local
the main method in this thesis; hence, specific
community, suppliers, and employees
procedures of carrying out an SLCA are
benefit from business conducts at the
explicated in each subsection below.
in
multiply
assessment
and
interpretation
same time (American Management
Association, 2007).
2.3.1 Definition of Goal and Scope
The first step to conduct a SLCA study is to state
2.3
Social
Life
the purpose and define the scope, composing of
Cycle
defining product’s utility and functional unit,
collecting data and identifying stakeholders.
Assessment
Companies
are
expected
to
take
social
Goal of the study
responsibilities; therefore, to know companies’
The purpose of conducting a social life cycle
impacts on society and stakeholders is ultimately
assessment study is described in the first place.
needed. Even though there are a large number of
Various intended applications of a SLCA study
social
responsibility
tools
for
lead to different methodological possibilities and
impacts
at
limitations (Jørgensen et al, 2008). Several why
company level, few of them have a broad
and what questions are asked in the purpose of
evaluating
assessment
enterprises’
social
9
identifying
objectives
of
the
study
stakeholders. According to Dreyer et al. (2006),
(UNEP/SETAC, 2009):
there is not a direct correlation between social

Why is a SLCA being conducted?
impacts and processes; instead, company’s

What is the intended use?
performances are associated with social impacts

Who will use the results?
and processes. Companies involve in the product

What do we want to assess?
system and conduct the business, which affect
social impacts indirectly.
Scope of the study
The scope of a SLCA study includes the depth
As ISO 14040 (2006) indicated that product
and breadth of a study and delimits an
flows should not cross system boundaries.
assessment, influencing the accuracy of a study
System boundary is to delimit product system by
result (Jørgensen et al, 2008).
I will discuss
asking ‘where is the product’s cradle and grave’
major parts of study scope below, which
(Blom & Solmar, 2009). Applying this to SLCA
includes functional unit, the product system,
means to identify processes which company,
system
suppliers and distributors involve in for a
boundaries,
social
indicators
and
inventory data.
product
system.
Nevertheless,
not
all
information on stakeholders involve in each
It is an essential step to define functional unit in
process needed to be reported in a system
the scope of a SLCA study for the reason that it
boundary.
facilitates to building product system and
conducting following phases. Descriptions of
Generic and site specific data are two types of
product’s functions, relevant market segments,
data
product alternatives and reference flows are
boundary (UNEP/SETAC, 2009). Generic data
favourable to define an appropriate functional
are data that not collected through conducted
unit (Weidema et al., 2004). Product’s functions,
stakeholders directly. The data may not present
namely
encompass
company’s performances and product’s impacts
product’s main functions, qualities, additional
for a given purpose. Conversely, site specific
services, image, costs and special environmental
data are gathered for a specific process and from
and social properties. Nevertheless, different
specialized company. It is able to represent a
with ELCA to interpret results per functional
product’s current impacts. Both generic and site
unit, SLCA approach which intends to use
specific data are gathered in a SLCA study as it
qualitative and semi-quantitative data will
is unable to collect all data on-site for the reason
describe
of time-consuming and costly. Generic data are
properties
impacts
of
product,
result
by
companies’
characteristics (UNEP/SETAC, 2009).
collected
after
defining
the
system
used to evaluate impacts which are not affected
by organizations’ actions and site specific data
The product system contains a series of process
are to assess organizations’ influence on the
chains and operations throughout a product’s
product (UNEP/SETAC, 2009).
entire life cycle. In terms of ELCA, there is a
natural
link
environmental
between
physical
The
flows
and
Social indicators
environmental
Inventory indicators are used to structure data
impacts are evaluated by the input and output
(Benoit et al., 2008). Social subcategories of
inventory data for processes (Chen & Froukje,
SLCA are those socially significant attributes or
2010). In contrast, SLCA is to evaluate product’s
themes that justify which information should be
social
included in a study. Social subcategories can be
and
impacts.
socio-economic
impacts
on
10
firstly classified by stakeholder categories with a
(Weidema, 2006; Schmidt et al., 2004; Manhart
purpose of gathering data and observing
&Grießhammer, 2006).
information
organizations’
through
unit
perspectives.
processes
Five
from
main
Life cycle inventory analysis phase includes
stakeholder categories include workers, local
processes of data collection for screening, main
community, society, consumers and value chain
data collection, characterization, relating data to
actors (UNEP/SETAC, 2009).
functional unit, refining system boundary and
data aggregation (UNEP/SETAC, 2009). Data
Social subcategories can also be classified into
collection process starts with two questions: a)
impact categories for further evaluations and
where are the unit processes located and which
interpretations. Impact categories of a SLCA
organizations are involved? b) Which activities
study are social results for stakeholders and
are variable? These two questions help us to
decision makers that grouped logically. They are
know what site specific data should be gathered.
divided into two types, the midpoint category
Since
(Type 1) and endpoint category (Type 2). Type 1
subcategories, inventory indicators and data
is to accumulate subcategories’ results to a
gathering strategies can be determined in the
stakeholder that is interested in this theme, while
second phase. Desktop screening can be
type 2 is to model results for subcategories to the
achieved by literature review and web search,
endpoint, e.g. autonomy (UNEP/SETAC, 2009).
whiles site specific data is carried out by social
Midpoint indicators are mainly for providing
audit, interview, focus group, questionnaires and
information to decision makers.
surveys (UNEP/SETAC, 2009). The third step is
data
collection
is
developed
from
collecting main data by gathering data to
2.3.2 Life Cycle Inventory Analysis
illustrate social impacts through a product chain.
Life cycle inventory phase intends to collect data
The desktop screening goes first to collect
on the basis of the goal and scope definitions
organizations’ specific information, followed by
(UNEP/SETAC, 2009). The system modelling
interviewing and observing organizations’ social
and life cycle assessment results are achieved in
performances on site. Triangulating data is
this step as well. However, the most difficult
suggested by UNEP/SETAC (2009) to maintain
problem is in the data collection process.
a fair view of data, which means that data should
Different from ELCA that has a direct link
be
between physical flows and environmental
stakeholder groups. Characterization means to
impacts; social impacts of SLCA are evaluated
match data for assessing impact. Relating data to
by the conduct of company. As a result, social
functional unit and unit process is required in an
impacts are assessed according to enterprise’
ELCA study so as to present input and output
actions on its stakeholders rather than based on
results of product system by per functional unit.
the industrial process (Spillemaeckers et al.,
Nevertheless, this step can be omitted in a SLCA
2004). Gathering site specific data from study
study if the study utilizes qualitative data.
companies will increase the accuracy of study
Sensitivity analysis is performed to estimate if a
results. However, many authors advocated using
process affects the overall result in a SLCA study.
generic data for the reason that it is very difficult
The last step is data aggregation, which should
to reach all site specific data through the whole
be applied with location information of the unit
supply chain. They also admitted that generic
processes.
data from national, regional and global databases
could help to evaluate several social impacts
11
collected
from
different
sources
and
2.3.3 Life Cycle Impact Assessment
endpoint category. However, there are no general
Life cycle impact assessment is the place to
practices for modelling subcategories to impact
describe and transfer sLCI (social life cycle
categories at present (UNEP/SETAC, 2009).
inventory) results into social and socio-economic
Classification is to link inventory results to
impacts. It is to summarize and interpret social
specific stakeholder category/ impact category.
significance of data that was gathered in the
As for characterization, it is to calculate
inventory phase. As UNEP/SETAC (2009) states,
subcategory results and aggregate results within
the purpose of sLCI in SLCA study is to provide
the same impact category. There is no need to
a combination of: aggregating inventory data
get quantitative results in SLCA study, but to
within subcategories and categories; and making
write a summary on the basis of descriptive
use of additional information to help understand
inventory information.
the magnitude and the significance of the data
collected in the Inventory phase.
2.3.4 Interpretation
Life cycle interpretation is the last major phase
Similar to eLCIA (environmental life cycle
to complete a social life cycle assessment study.
impact assessment) that utilizing cause-effect
It has several goals, including results analysis,
model to link inventory data to environmental
conclusions, explicating limitations of a study,
impacts, sLCIA (social life cycle impact
recommendation and reporting (UNEP/SETAC,
assessment) intends to stem social life cycle
2009). UNEP/SETAC (2009) defines four steps
impact assessment results from inventory data
to
with the processes of methods and models
identification of the significant issues; evaluation
selection, classification, and characterization
of the study; conclusion, recommendation and
(Fig. 1).
reporting; and level of engagement with
conduct
an
interpretation
process:
Impact categories
Aggregation/ characterization
Subcategories
Aggregation/ characterization
Inventory indicators
Life cycle inventory data
Fig.1 Processes for sLCIA (UNEP/SETAC, 2009)
stakeholders.
Life cycle impact assessment phase starts with
selecting impact categories, subcategories and
The first three steps are similar to environmental
characterization models according to the goal
life cycle assessment, while the fourth one is
and scope of a study. As mentioned in 2.4.1,
particular for a SLCA study. To be more specific,
impact categories include midpoint category and
identifying
12
key
concerns
through
generic
assessments, limitations and results from the
3.1.2 A Case Study Approach
study is the first process for interpretation,
A case study approach was used to explore
followed by an estimation of the study with
phenomena (Yin, 1981) and a description case
considerations of completeness and consistency.
study research was applicable for resolving how
The third step is to draw a conclusion in
questions (Woodside, 2010). Therefore, the case
accordance with the goal and scope of the study.
study approach was suitable for this thesis that
As SLCA is evaluating social impacts by
intends to understand and explore business as
business conducts, it is essential to report the
well as social life cycle assessment mechanisms.
participations and involvement of stakeholders
in the last step.
The case study was found with the help of
Wuhan and Borlänge. They helped me to contact
companies, and finally, Boffin Company agreed
3. Methodology
me to do the case study. I told Boffin my
and
research purpose and the manager in Boffin
recommended me to study on the BOD online
Research Design
monitor product which was developed by Boffin
itself. Since the thesis was to explore a product’s
3.1
social impacts throughout the life cycle and there
Research Approaches
was not only one company involved in BOD
3.1.1 Inductive Approach
online monitor’s whole life, Boffin staffs helped
The thesis aims to understand how business can
me to contact its core
contribute to sustainable development and
(Universtar Company) that was responsible for
explores the mechanisms of social life cycle
producing the product.
business partner
assessment. It is more likely to explore
undiscovered new information by analyzing data
It contained two companies and one product.
rather
relations
Boffin was a company situated in Wuhan and
between sustainable development and social life
Universtar was located at Shenzhen, China.
cycle assessment. Since inductive approach is
Boffin and Universtar companies were analyzed
usually used to analyze qualitative data and
to understand the first and second research
explore unperceived phenomenon (David, 2006).
questions, while the BOD online monitor
The inductive approach was used in this thesis.
product was researched to resolve the third
Three general research questions, designed
question.
than
hypothesizing
about
according to the main purpose of the master
thesis, have been asked in the first chapter. After
Observation,
analyzing
that, the specific BOD online monitor case study
interviews methods (Silverman, 2001) were used
was employed to analyze results and answer
in BOD online monitor case study. The study
general research questions. At the end, the
started with reading internal reports and other
general aim will be achieved after resolving
documents, observing Boffin and unstructured
research questions. Nevertheless, as there is only
interviews with aiming to understanding BOD
one case in the whole thesis, the evidence cannot
online monitor’s functional utilities as well as
guarantee an absolutely accurate conclusion
preparing for data collection. An inventory data
(Klix, 2002).
gathering
list
semi-structured
documents
and
(see
Appendix)
and
interview
questions
were
designed after that. The inventory data gathering
13
list was used for evaluating Boffin and
Furthermore, scoring system was used to
Universtar companies’ social performances as
quantify the qualitative data and models were
well as BOD online monitor’s social impacts.
used to calculate indicators’ scores. There were
The categories and subcategories were selected
four levels of indicators in BOD online monitor
from UNEP/SETAC guidelines (2009), while
case study, which included categories level,
inventory indicators and inventory data were
subcategories level, inventory indicator level and
selected from GRI indicators in accordance with
inventory data level. Indicators belong to
the BOD online monitor case. It was filled by
category type are the first level, subcategories
gathering
companies’
internal
are the second level, inventory indicators stand
interviewing
for the third level and inventory data are in the
questions.
fourth level. All data, namely child nodes,
Interviewing companies’ managers and staffs
belongs to the same parent node are assumed to
with semi-structured questions was to evaluate
have same weights. Hence, the weight of each
corporations’ CSR levels.
level can be calculated as:
documents,
websites
employees
with
data
from
and
structured
, where
Since I stayed in Boffin and there were only
indicates the value of weight in the i level,
eight employees in this company, I was able to
indicates the level,
do face-to-face interview to staffs. Informants
,
indicates the number of all indicators belong
from Universtar Company’s informants were
to the (
contacted with Boffin’s help and I made
) level.
telephone to these interviewees. This thesis was
conducted without monetary compensation;
All inventory data (see Appendix) was scored on
therefore, Boffin and Universtar companies
a scale of -1 to 1, where -1 means the inventory
helped me voluntarily without getting any
data has a negative effect; 0 means the inventory
compensation as well. There was no respondent
data does not have an effect or the data is not
person
available; and 1 means the inventory data has a
and
all
informants
answered
my
positive effect. All scores for inventory data of
questions kindly.
Boffin are shown in Appendix 2 and for
3.1.3 Qualitative and Quantitative
Approach
Universtar are demonstrated in Appendix 3.
The
and
Since scores of inventory data in the fourth level
quantitative methods. Qualitative method was
has been measured and weights can be
guided by broad research questions on the basis
calculated. The score of indicators in the third
of theoretical framework (Trumbull, 2005) and
level can be calculated by:
thesis
utilized
both
qualitative
was used to explore people’s behaviors and
, where
performances (Silverman & Marvasti, 2008). For
indicates the value of the indicator in the
third level,
this study, research questions were based on
indicates the value of the inventory data in
sustainable development theory, corporate social
the fourth level,
responsibility theory as well as social life cycle
indicates the value of the weight in the
assessment theory. In addition, it evaluated
companies’
CSR
levels
and
forth level,
interpreted
indicates the number of inventory data in the
enterprises’ social performances by utilizing
forth level that belong to the same parent node.
qualitative descriptions.
14
Similarly, scores of subcategories can be
Company were interviewed by telephone, which
calculated as:
included one manager in Wuhan office (Mr. Li),
, where
one administrative staff in Wuhan office (Ms.
indicates the value of the subcategory in the
Zhou). In the meantime, two interviewees from
second level,
Universtar
indicates the value of the indicator in the
Company’s
headquarter
visited
Wuhan in May and I was able to have a
third level,
face-to-face interview with them.
indicates the value of the weight in the third
level,
Structured interview technique and secondary
indicates the number of indicators in the third
sources of websites and reports were used for
level that belong to the same parent node.
gathering inventory data by creating a table with
a list of questions. I filled in the table with
The score of categories can be calculated as:
information which can be found through website
, where
or other sources. After that, Boffin’s table was
indicates the value of the category in the first
filled by asking its staffs. They provided
level,
information by sending me internal documents
indicates the value of the subcategories in the
or answering questions directly. Universtar’s
second level,
inventory data was collected through telephone.
indicates the value of the weight in the
second level,
3.3
indicates the number of indicators in the
second level that belong to the same parent node.
Trustworthiness
Seale (1999) states trustworthiness as a balance
between confessions and self-consciousness.
3.2
Confession is the description of fieldwork’s
Data collection
experiences which has weak connections with
The BOD online monitor case study was
regrets,
conducted from March, 2012 to June, 2012. The
research’s result (Seale, 1999). For this thesis,
formal data collection process started after
the overall purpose is to understand how
completing conceptual framework and designing
business
inventory data list.
development and explores the mechanisms of
and
can
self-consciousness
contribute
to
affects
a
sustainable
social life cycle assessment. It is a process of
Semi-structured
questions
were
used
for
observing, exploring and learning. It is a chance
acquiring Boffin and Universtar companies’
for me to explore corporations’ level of business
business values and general information. For
from sustainable development concept and
Boffin Company, I used face-to-face interview
discover positive and negative impacts from the
and took notes during this process. Five out of
SLCA mechanism, which I think is more
eight staffs were interviewed, including one
important than the accuracy of a final result. I
general manager (Ms. Li), two marketing staffs
tried my best to work well for this study without
(Mr. Zhao, Mr. Wen), one administrative officer
regrets.
(Ms. Sun) and one research specialist (Mr. Cai).
Ms. Li was interviewed when she had time and
The theoretical and conceptual framework
stayed in the office. Informal workshops were
affects a case’s descriptions if there are a large
held and other four staffs were interviewed at
number of data (Johnson, 2007). This thesis
same time. Two informants from Universtar
contains one product, two companies and a large
15
number of raw data sources. In order to make
logically on the basis of the conceptual structure
raw data
and analyze objectively.
visible
in the
thesis,
a
clear
demonstration of conceptual framework is
extremely important. However, for this thesis,
corporations’ level of business is designed on my
4. Empirical
own illustration. If other people structure another
level of business based on their cognitions and
Findings
and
Analysis
experience, the case study findings and analysis
will be different from mine. Namely, the
conceptual framework considerably influences
This chapter tries to answer three research
on the case study’s final results.
questions proposed in the beginning of the thesis.
I conduct a BOD online monitor case study with
A case study is strengthened by triangulating
bearing three questions in mind. The chapter
data sources, namely, collecting and comparing
analyzes corporations’ CSR level and presents
data from several ways (UNEP/SETAC, 2009).
BOD online monitor finding. For the reason that
However, if informants’ interpretations are
all of inventory data have been shown in
diverse, a risk of misunderstanding might
Appendixes,
happen (Johnson, 2007). This study decreases
consistently, I will not separate findings and
possibilities of getting controversial and contrary
analysis but to illustrate them at the same time.
in
order
to
keep
contents
interpretations by designing questions with clear
goals
and
applying
semi-structured
and
As mentioned in project background, the porous
structured interview methods to collect data. It
ceramic biochemical oxygen demand online
was difficult, costly and time-consuming to find
monitor of the case study is developed by Boffin
other several cases so as to generalize a
Company and produced by Universtar Company
conclusion; as a result, there is only one case in
(Shenzhen). I utilize Boffin and Universtar
this thesis. Although the finding of single case
companies’ as a case to show how to evaluate
fails to represent other general cases, it can be
their CSR levels from sustainable development
used for theoretical generalizability and then be
perspective. Research question 2 and 3 are
tested in other cases (Bryman & Bell, 2007).
related to SLCA method. Hence, I assess the
Hence, even though the thesis only utilizes a
BOD online monitor and present explicit
single case to draw a conclusion, the conclusion
procedures on how to conduct a SLCA method. I
was expected to be tested by other people.
will disclose enterprise’ social performances and
explore how to improve the BOD online
Procedures and evidence’s transparency is
monitor’s social impacts from the product’s
beneficial
trustworthiness
processes. The procedures and results of SLCA
(Seale, 1999). Workshops and comparisons of
can help to answer the second and third research
informants’ versions contribute to a decrease of
questions.
for
strengthening
misunderstandings and uncovering informants’
hidden statements (Johnson. 2007). For this case
Corporations’ CSR level
study, different informants were inquired about
4.1
same questions and reports were checked to
How can a business’ CSR level be assessed? For
establish truth. Nevertheless, self-consciousness
this case study, the question is to identify Boffin
of personal subjectivity might bias descriptions
and Universtar companies’ CSR levels from
(Seale, 1999). I tried to describe the case
sustainable view.
16
monitoring services; in the other term, it is
As demonstrated in conceptual framework
responsible
chapter, corporations’ business can be divided
manufacturing and assembling key components.
into three CSR levels. For each CSR level, and
Boffin Company is responsible for the phase of
then,
developing and designing BOD online monitor.
is
evaluated
from
the
conceptual
for
developing
products,
framework, process and an end goal. Due to
organizations’
complex
behaviours
and
Conceptual framework
performances, corporations’ CSR level might not
Boffin Biotechnology Company is deemed itself
be definitely identified as level 1, level 2 or level
as a socially responsible company that provides
3. Instead, an enterprise might be at level 1 in
pollution monitoring and food safety inspections.
terms of conceptual framework while be at level
The general manager, Ms. Li, said that this
2 in the process stage. As mentioned previously,
company was not set up for making money, but
level 3 has a higher standard than level 1. If a
for providing the newest innovations to the
company fail to meet the standard of level 1, it is
public and governments so as to protecting the
definitely not at level 3. Therefore, I will identify
environment (personal communication, May,
corporation’s CSR level from level 1 to level 3.
2012). Acknowledging that water pollution is
If the corporation does not perform better than
increasingly deteriorative and the public are
low level’s standards, it means the corporation’s
facing serious food security challenges, Boffin
CSR level is below that level. Thus, I will not
Biotechnology Company was established to
continue to analyse a higher CSR level.I will
address these problems.
analyze
sustainable Boffin and Universtar
Companies’ business CSR levels respectively in
Sustainable development is one of Chinese basic
subsections.
state polices and it is extremely important to
conduct Boffin’s business on the basis of this
4.1.1 Boffin Company
principle, as Ms. Li committed (personal
Boffin, a full name of Hubei Boffin Biological
communication, May, 2012). The BOD online
technology
the
monitor, a product developed by Boffin, is
International Enterprise Center, Wuhan, China. It
environmental friendly and is used to prevent
is a company belonging to environmental
sewage discharging. The product monitors BOD
protection industry that was founded in March,
value in water and use less electricity than its
2011.
counterparties. The food safety quick detection
Co.
Ltd,
is
situated
at
reagent kit, which is planned to develop after
This company provides products and services in
completing BOD online monitor, is used in food
bio-sensing,
and
inspection field. If all individuals would be able
nano-materials fields. It is devoted to promoting
to detect food and vegetables themselves in
advanced
nanometer
China, food poisoning incidences are expected to
materials in fields of environmental protection,
decrease dramatically, Ms. Li said, and Boffin’s
biomedicine and food safety.
mission is to provide such a technique to
Boffin is not a purely technology company only
2012).
environmental
biotechnology
protection
and
Chinese citizens (personal communication, May,
developing innovative environmental protection
products. It is also in a role of assembling major
According to CSR levels, I established in
accessories. In one term, Boffin involves in
conceptual framework chapter, Boffin Company
competing bids and providing environmental
does not focus on maximization of shareholder’s
17
profits with a lower standard of ethics than
conferences and workshops which can improve
society or striving for monetary goal (Friedman,
their capacities.
1970; Branco & Rodrigues, 2007). It does not
deem environmental law as obstacles (Lantos,
Boffin conducts business with bearing green and
2001); in contrast, environmental protection is
energy efficiency in mind. Materials chosen for
Boffin’s major business target. Boffin recognizes
BOD online monitor should have good qualities
environmental protection and embeds it into
with the cheapest prices. Universtar Company is
business operations on a voluntary basis (Roome,
selected as the manufacturer to make BOD
1998).Companies at CSR level 3 integrate and
online monitor for the reason that Universtar has
measure
business
experience in designing and producing online
operations (American management association,
monitors. It can address practical manufacturing
2007). However, there is no evidence showing
problems and optimizes BOD online monitor.
that Boffin embeds social aspect into operations.
The other reason for their cooperation is because
Hence, based on the analysis, Boffin Company is
their
at
Universtar companies are confident for the
sustainability
level
2
from
into
its
conceptual
framework
perspective.
common
values.
Both
Boffin
and
product that the product will be profitable in the
coming future. In general, Boffin selects its
Process
business partners on account of companies’
For Boffin Company, it not only intends to
reputations and reliabilities. It is also reliable to
provide a comfortable workplace, but also tries
its
to offer a warm ‘family’ to its employees. It is
reliabilities
platform to reach employees’ dreams and it is a
experiences. Whether enterprises have child
family where staffs can share their emotions and
labours or other problems will not be taken into
affections. Since the BOD online monitor is still
consideration if these social problems do not
in test, there are not any plant workers in the
affect selling products. As not all small and
company at present. The number of current
medium-sized enterprises publish annual reports
employees is eight, including two research
or CSR reports, it is difficult to know companies’
fellows,
and
social performances. That is another explanation
three
administrators.
marketing
All
staffs
employees
business
are
partners.
evaluated
Reputations
by
and
enterprises’
including
why Boffin does not evaluate corporations’
managers gather together every Friday for
social behaviours when choosing business
summarizing what they have done within one
partners.
week and making targets for the next week. If
employees meet difficulties or come up with
In conclusion, managers in Boffin Company are
suggestions, they are all encouraged to speak out
not only responsible for making profits for
in the meeting. The communication sharing
shareholders by choosing materials in good
platform is an online chatting group. All
qualities with the cheapest prices (Branco &
employees join the group and new information
Rodrigues, 2007), but also have duty to provide
related to Boffin Company is put out through
a decent working place for employees (Buchholz,
Commission
of
the
European
this group. Employees have problems can also
1991;
propose their questions there. Excursions and
Communities, 2001). Boffin tries to embed
parties are held within Boffin Company with the
economic, social and environmental values into
purpose of enhancing members’ team work
operations
spirits and cooperation. Furthermore, Boffin
Employees enjoy internal CSR practice of health
Company encourages
and safety at work and education trainings and
its
staffs
to
attend
18
simultaneously
(Roome,
1998).
Boffin intends to produce green and energy
(Commission of the European Communities,
4.1.2 Universtar
Technology
Co.LTD
2001). For external stakeholders, however, no
Universtar Science &Technology Company was
conference has been held for local communities.
set up in March 2002 with registration capital of
In terms of suppliers, Boffin does not take
CNY four hundred million. It has 18 branch
suppliers’ child labours or other social problems
offices and 35 operation centers all over China.
into account if these social problems do not
The headquarter of Universtar is located in the
affect selling products. These indicate that
Tsinghua Information Port, High-tech industrial
Boffin fails to be responsible for part of its
park, Nanshan district, Shenzhen, China.
efficient
external
products
to
stakeholders
protect
environment
of
the
Thus,
the
Universtar offers products and services mainly in
company cannot meet all qualities of CSR level
three areas: monitoring, treatment and operation
2 and I will not continue to analyse Boffin from
services. It develops environmental monitoring
level 3.
products and platforms, environmental pollution
European
(Commission
Science
&
(Shenzhen)
Communities,
2001).
treatment
technologies,
water
ecological
End goal
restoration techniques, operates services for
The end goal for Boffin Company can be
environmental pollution treatment facilities, as
represented by its products. The company make
well as invents energy and emission reduction
profits for its shareholders by selling products.
technologies.
Meanwhile, since its products’ functions are
beneficial for protecting environment, Boffin
In
the
meantime,
Universtar
is
also
a
Company contributes to ameliorating pollutions
manufacturer for water quality monitoring
indirectly. Boffin has not created any social and
system, ammonia nitrogen online analyzer,
environmental problems until now, but it
chemical oxygen demand (COD) monitoring,
commits to take responsible for external societal
heavy metal water quality monitoring, ultrasonic
problems made by Boffin itself.
sewage flow of open channel, water geometric
proportion sampler, environmental air quality
Hence, Boffin’s role is not only to produce
monitoring system, fixed pollution resource oil
wealth (Friedman, 1970; Branco & Rodrigues,
fume
2007), but also ameliorating the environment
backscatter fume analyzer at present. The porous
(Carroll, 1991; Carroll, 1998). Since there is not
ceramic BOD online monitor developed by
local community and other external stakeholder
Boffin is produced and assembled in Universtar.
continuous
monitoring
system
and
participating in negotiating Boffin’s business
decisions, sustainable goals cannot be achieved
Conceptual framework
in multiply dimensions and stakeholders do not
Universtar Science and Technology (Shenzhen)
benefit from business at the same time
company is deemed as a high technology and
(Waddock &Bodwell, 2004). As a result, Boffin
environmental protection company. It develops
is at the second CSR level in terms of end goal
high techniques, manufactures environmental
dimension.
protection products as well as provides after-sale
services. It is responsible for preserving and
providing clean water and air to the public.
For
19
Universtar
Company,
the
sustainable
development
can
be
achieved
by
being
creditable to the public, providing environmental
Process
friendly products and services, and innovating
There are more than one thousand employees in
green techniques. It provides environmental
Universtar Company, and some of them are
protection products in various fields, such as
working in branches offices. Even though it is
water quality monitoring system, ammonia
impossible for employees to know all news
nitrogen online analyser, air quality monitoring
happened in the company, Universtar posts big
system, backscatter fume analyser and etc. To
events in its website. In the
provide products with good qualities is one of
employees are able to acquire information
Universtar’s major missions. In terms of green
related to their working portions by email alerts.
techniques, Universtar develops products with
Employees also have training opportunities
high technologies so as to prevent environmental
every month. One informant in Wuhan Branch
disasters and address environmental problems by
Company tells me that Universtar chooses the
early warnings. It researches and develops
topic, invites lecturer and prepares handouts.
products on the basis of market’s demands as
Handouts
well as customers’ requirements. As for services,
headquarter
Universtar Company not only provides after-sale
employees meet difficulties, they can ask their
services, but also offers operating services. In
superiors for help by sending emails or using
China, manufacturer who produces environment
phone calls. Universtar Company does not have
related products provides after-sale services for
any excursions and parties that holding for the
one year and after that, those products are
whole company, but branches offices and
maintained and repaired by other companies that
departments organize activities for staffs.
are
examined
before
and
training
meantime,
verified
employees.
by
If
have operating certificates. Universtar Company
provides
services
with
faithfulness,
good
As a manufacturer and operator, Universtar
qualities and considers customers’ specific
contacts with many suppliers and companies.
requirements.
The same as Boffin Company, Universtar also
deems companies’ reputations and reliabilities as
As a whole, Universtar does not merely purse for
the most important criteria for selecting business
maximum profits (Friedman, 1970; Branco &
partners. Reputations and reliabilities are judged
Rodrigues,
being
by enterprises’ experiences. Other social issues
creditable to the public, providing environmental
will not be taken into consideration if they do
friendly products and services, and innovating
not affect selling products. The main mission for
green techniques (Roome, 1991; Roome, 1998).
mangers in Universtar is to make profits. If one
Similar to Boffin Company, Universtar’s is in
decision can make profits, the manager is able to
environmental protection industry. Its goal is to
implement it without others managers’ admits.
2007),
but
devotes
to
preserve and provide clean water and air to the
public. Itobeys Chinese laws. Furthermore, it
In terms of process dimension, main mission for
does not deem environmental law as an obstacle
mangers in Universtar is to make profits
but
2001).
(Friedman, 1970; Branco & Rodrigues, 2007).
Nevertheless, Universtar mainly puts emphasis
as
an
opportunity
(Lantos,
Nevertheless, Universtar Company also provides
on environment and does not embed social
training opportunities and social activities to its
values into its business operations (American
employees (Buchholz, 1991; Commission of the
management association, 2007). For this reason,
European Communities, 2001). It tries to embed
Universtar is at CSR level at present.
economic, social and environmental values into
20
operations
simultaneously
(Roome,
1998).
Boffin and Universtar companies’ CSR levels.
However, it has never held any conferences for
Two companies are both at CSR level 2 in
local communities. It does not take suppliers’
dimensions of conceptual framework and end
child labours or other social problems into
goal, but below CSR level 2 in process
account if these social problems do not affect
perspective.
selling products (Commission of the European
Communities, 2001). As a result, Universtar fails
to meet all qualities of CSR level 2 and I will not
Conceptual
continue to analyse level 3.
framework
End goal
Process
As a company engaging in environmental
Boffin
Universtar
CSR level 2
CSR level 2
Below
Below CSR level
CSR
level 2
2
CSR level 2
CSR level 2
protection industry for ten years, Universtar is
proud of its achievements. It is assessed as
End goal
China’s potential company rank one by Forbes
Table 1 Finding in Summary
2010, and Technology fast 500 in Asia-Pacific
by Deloitte 2009. It also obtained many other
Both Boffin Company and Universtar Company
awards, such as Guangdong Province Creditable
are at CSR level 2 for the conceptual framework
Company,
Guangdong
Province
Branded
dimension. Namely, they have sustainable
Province
Famous
business senses and commit to do business in a
Trademark, Shenzhen Independent Innovation
sustainable way. Specifically, two companies
Industry Leading Enterprises and etc.
emphasize on and aim to develop high
Product,
Guangdong
technology
products
for
environmental
As for the end goal, it can be reflected from
protection. They do not recognize all policies as
Universtar’s taxes, achievements and products’.
obstacles; in contrast, regulations of protecting
Universtar is a profitable and responsible
environment are beneficial for making profits for
enterprise
working
them. Nevertheless, companies’ strategy is
conditions to its employees, develops green
mainly in environmental area and companies do
products to society and pays taxes to the
not embed social values into their business
government (Carroll, 1991; Carroll, 1998).
operations.
that
provides
decent
Sustainable goals cannot be achieved in multiply
dimensions and stakeholders do not benefit from
Two companies’ business CSR levels in terms of
business at the same time for the reason that
process aspect are below level 2. The two
external stakeholders are not able to participate
companies incline to find their business partners
in Universtar’s business decision making process
which have high reputations and provide the
at present (Waddock & Bodwell, 2004).
lowest
Universtar’s CSR level is 2 in terms of end goal
profitability as their main task and ignore social
perspective.
impacts
price.
when
Moreover,
making
managers
business
deem
decisions.
External stakeholders such as communities, local
residents and NGOs are unable to involve in
4.1.3 Discussion
I
have
identified
companies’CSR
Boffin
levels
and
from
Universtar
Boffin and Universtar companies’ decision
conceptual
making process.
framework, process and end goal perspectives in
the above two subsections. Table1 exhibits
In terms of end goal, Boffin and Universtar are
21
all at the second level. It might because they are
study’s intended applications (Jørgensen et al,
both in environmental protection industry that
2008; UNEP/SETAC, 2009). The general goal of
promotes environmental protecting products.
conducting this social life cycle assessment
Hence, their value for sustainability is stronger
study is to explore BOD online monitor
than other organizations which have no relations
enterprises’ social performances and impacts;
with the environment.
therefore, no other comparative products will be
presented. This study attempts to demonstrate
In general, the result illustrates that two
companies’ social performances at a product
corporations are weak in process aspect and can
level and pick out major social impacts of the
put more emphasis on improving their CSR
BOD online monitor throughout its life cycle.
performances
The detailed description of goal and scope of
in
this
part.
Nevertheless,
social
this study is illustrated below, followed by
performances and impacts are not analyzed
definitions of functional unit and system
explicitly. In the next subsection, I will answer
boundary.
companies’
positive
and
negative
the next two research questions. I will utilize
SLCA method to disclose Boffin and Universtar
Goal of the study
companies’ social performances and discover
The purpose of conducting this study is to
further understand corporations’ sustainable
achievements. I will also identify how to
business
levels
improve BOD online monitor’s social impacts
negative
and
by exploring the product’s negative social
stakeholders and disclosing significant issues
impacts.
throughout BOD online monitor’s life cycle. The
by
exploring
positive
social
enterprises’
impacts
on
result is able to provide product’s social
4.2
information to its stakeholders and the public
SLCA on BOD online
who have an interest in this area, and it is in a
position to explicate corporations and product’s
monitor
potential improvements. Social and economic
How can the social life cycle assessment method
impacts are evaluated from five categories,
be
comprising of human rights, working conditions,
used
to
performances
disclose
and
enterprise’
factors
that
social
health
hinders
and
safety,
governance
and
sustainable development? How can social life
socio-economic repercussions. UNEP/SETAC
cycle assessment be used to improve product’s
(2009) listed five main stakeholder categories
social impacts? In order to tackle these two
and this thesis include four out of five types of
questions, I will use social life cycle assessment
stakeholders (employee, consumer, society and
method to analyse BOD online monitor. I will go
local community) that have direct or indirect
through the whole SLCA method from the
impacts on BOD online monitor.
beginning of defining goal and scope of a BOD
online monitor study to the end of interpreting
Scope of the study
SLCA results.
The scope of a SLCA study affects study result’s
accuracies. It includes the depth and breadth of a
4.2.1 Definition of Goal and Scope
study and delimits an assessment (Jørgensen et
General
al, 2008). Fig.2 draws a BOD online monitor’s
The first step of a SLCA study is to state the
whole life cycle from extraction of raw materials
purpose and define the scope so as to limit
to disposal and recycling. Scope of this BOD
22
online monitor’s social life cycle assessment
subcategories are rearranged in accordance with
study is constrained in design, manufacturing
social categories.
and assembling stages. Extraction of raw
materials, packaging and distribution, use and
Functional unit
maintenance, disposal and recycling phases are
Functional unit can be defined according to
excluded from the study. Information about
product’s functions, qualities, alternatives and
companies’ social performances in design,
etc. (Weidema et al., 2004; UNEP/SETAC,
manufacturing and assembling stage will be
2009). The product studied in this research is
gathered for better understanding sustainable
biochemical oxygen demand (BOD) online
development.
monitor. It is used to evaluate BOD value in
water. As long as design and manufacturing
Disposal
and
recycling
stages are evaluated, the functional unit is
Extraction
of raw
materials
defined as making a complete well-functional
online monitor.
System boundaries
Use and
maintenance
Design
The product system contains a series of process
chains and operations throughout a product’s
entire life cycle. It can be identified by asking
‘where is the product’s cradle and grave’ (Blom
Manufacturing
and
assembling
Packaging
and
distribution
& Solmar, 2009).Since there is not a direct
relation between social impacts and processes
themselves, companies affect the social impacts
indirectly by involving in the product system and
Fig.2The BOD online monitor’s life cycle
conducting
Five
main
stakeholder
the
business.
Companies’
categories
performance acts as the medium between
(workers/employees, local community, society,
product’s social impacts and processes (Dreyer
consumers and value chain actors) are suggested
et al., 2006). Hence, this case study focuses on
in UNEP/SETAC (2009). Four stakeholder
related enterprises rather than the BOD online
categories exclude the category of value chain
monitor product itself. The system boundary of
actor are contained in this thesis. Data collection
this study is delimited from designing stage to
is based on the stakeholder categories and
manufacturing
gathered in the company level. Social and
corporations and is to understand corporations’
socio-economic subcategories in this study are
social performances. Thus, since use and
from UNEP/SETAC guidelines (2009). In terms
maintenance stage’s objective is customers
of social impact categories, midpoint type is
rather than companies, this stage is not included
used for providing information to decision
in this thesis. Considering customers are in
makers. Midpoint social categories include
different cities, it is difficult to know which
health and safety, human rights, working
plants customers will choose for recycling and
conditions,
repercussions,
disposing. This SLCA study excludes recycling
cultural heritage and governance (UNEP, 2009).
and disposal stages as well. In addition, packing
Since
and distribution process is also excluded to
socio-economic
UNEP/SETAC
only
offers
social
categories without a specific table for social
subcategories
and
indicators,
phase.
simplify the study.
stakeholder
23
The
objective
is
A simplified diagram for illustrating main
monitor is shown in Fig 3.
procedures for manufacturing BOD online
Boffin
Develop and Design
Boffin provides technique documents and
design diagrams to Universtar
Universtar
Raw material procurement
Parts production
Quality control inspection
Components assembling
Boffin sends technical staffs to Universtar
for guarantying product’s quality
Boffin
Quality
control
inspection
Debug BOD product
Factory inspection
Fig.3Corporations and procedures directly related to BOD online monitor in the study
From the diagram, it can also be found that
there is extensive amount of raw material
Boffin and Universtar are two main actors in
information related to BOD online monitor and
making this product. Boffin Company offers
corporations,
technical documents, such as construction
subcategoriesand indicators to justify valid data
drawings, machining drawings, arrangement
which need to be collected (Benoit et al., 2008).
we
identify
several
social
diagrams, electrical principle diagrams, bills of
materials and reports for process testing, to
Worker/employee category
Universtar Company for producing components
It implies to people who work in Universtar and
and assembling BOD online monitor. Boffin is
Boffin companies, and those who contribute to
responsible for inspecting and debugging BOD
making BOD online monitor. For Boffin
online monitor in the final stage.
Company, this category includes both employees
and
employers.
For
Universtar
Company,
Social indicators
workers in plants and staffs in offices are
Already mentioned before, there are four
belonged
stakeholder categories which related to BOD
association and collective bargaining is a solid
online monitor, including worker/employee,
human right that all workers and employers
consumer, society and local community. Since
establish
24
to
and
this
join
category.
Freedom
organizations
of
without
interferences (SETAC, 2009). This subcategory
employees with non-monetary awards, such as
tests if employees in Boffin and Universtar are
insurances, paid maternity and paternity leaves,
access to join trade union and take activities
paid sick leaves, educations and trainings etc.
freely. Child labor in this study is deemed as a
child who works while his/her age is below the
Consumer category
Chinese minimum age for employment. I will
Consumer
count the number of child and young, investigate
organizations that use Boffin and Universtar
children’s
report
companies’ products and services. It can be an
incidents related to child labor workers in Boffin
individual, a group of people, and organizations.
and Universtar. Fair salary is the wage that
Health and safety for consumers indicates that it
commensurate with a given service or work. I
is safe for customers to use Boffin and
will compare Boffin and Universtar’s lowest
Universtar’s BOD online monitors and other
wages and entry level wages to a minimum fair
services satisfactorily. The inventory indicators
wage for the local prevailing wages. Short-term
for health and safety include the number of
employee, post-employment and other long-term
consumer complaints, quality of labels of health
employee benefits are also parts of fair salary.
and safety requirements and etc. Feedback
Working hours refer to the hours that workers
mechanism
require to work. Average number of working
satisfactions. It is to know if Boffin and
hours and overtime arrangements of Boffin and
Universtar companies provide efficient and
Universtar belong to this subcategory. Forced
sufficient grievance mechanisms for consumers.
labor is the work or service that is done
The total number of resolved grievances is also
compulsorily by individuals without considering
an indicator in this subcategory. Consumer
their willingness. Several questions are asked to
privacy includes respecting and protecting
know if two companies have forced labor. For
consumers’
instance, I will ask if employees have rights to
information, restricting use of data to its original
leave as they wish. Do workers need to keep
purpose. It is to be assessed by reporting Boffin
their identity cards or other documents by Boffin
and Universtar companies’ internal management
and Universtar companies? Are workers free to
system to protect consumer privacy and number
terminate their employment within the prevailing
of consumer complaints related to breach of
limits? Equal opportunities/discrimination in
privacy or loss of data within the last year.
this case is that both female and male have the
Transparency is that organizations make clear
right to access to opportunities equally. Equal
information
opportunities
anti-discriminations
responsibilities in a transparent way. I can know
regulations are reported. I will compare salary
if companies do well in this part by investigating
and parent leaves by gender. Health and safety
the number of complaints regarding transparency.
includes security personnel and occupational
Boffin or Universtar is deemed as have good
safety and health parts. I will examine if Boffin
consumer transparency practices if there are not
and
any
working
Universtar
and
conditions
companies
and
have
security
here
refers
fiercely
private
of
complaints
their
links
data
to
people
with
and
products
regarding
and
consumer
personal
and
social
transparency.
If
personnel to protect workers and if their
organizations have certification standards and
workplacesare to provide a health and safety
labels to provide their performances, they have
occupational place and prevent workers from
better transparency than enterprises which do not
risks that result in adverse health problems.
have certificates. End of life responsibility is to
Social benefit/social security is to investigate if
provide products’ end of life disposal options to
Boffin and Universtar companies compensate
customers. Companies can provide information
25
on how to disposal their products in a more
environmental
and
sustainable
way.
This
Local community category
subcategory is to explore if Boffin and
Local community refers to local residents and
Universtar have internal management systems
communities that can be affected by Boffin and
ensure that clear information is provided to
Universtar enterprises. Safe and healthy living
consumers on end-of-life options and if there is
conditions subcategory refers to organization’s
any complaints on this issue.
impacts on community in terms of safety and
health aspect. It is to identify if there are any
health and safety effects caused by companies’
Society category
whole
operations and if the local community near
environment that consists of economic, social,
operations. Community engagement encourages
political and all issues influencing our human
relevant community stakeholders to participate
world. This category is to understand Boffin and
in organization’s decision making processes. It
Universtar companies’ impacts on the society.
also contains how Boffin and Universtar
Public commitment to sustainability issues is a
organizations involve in local communities from
commitment made by organization to its
community
stakeholders and the public related to sustainable
organizational
development from organization’s activities. It is
employment
to know if Boffin and Universtar companies
Universtar’s direct and indirect impacts on local
recognize sustainability and willing to promote
employments. It can be done by providing job
sustainability. The commitment can be found
positions,
from
website,
positions to local people. Priority to choose local
promotional materials and other documents.
suppliers is another way for contributing local
Contribution to economic development evaluates
employments. Respect of indigenous rights
Boffin
organization’s
comprises the right to territories, properties,
contributions on the economic development
resources, cultural integrity and etc. This
aspects, composing of generating revenues,
subcategory is to know if there exist indigenous
creating jobs, educating and training, investing
people in Boffin and Universtar’s operation
and etc. Prevention and mitigation of armed
areas and how operations affect indigenous
conflicts exams the possibility that Boffin and
people.
This
category
Boffin
and
is
and
illustrated
as
Universtar’s
Universtar
a
stakeholder,
support
is
to
especially
meeting
aspects.
evaluate
senior
Boffin
and
Local
and
management
Universtar organizations lead to or mitigate
armed conflicts through their business operations.
In conclusion, subcategories are selected from
Inventory indicators for this subcategory include:
UNEP/SETAC (2009) and are matched in
is the organization doing business in a region
accordance with the BOD online monitor study
with ongoing conflicts? Is the organization doing
(Table 2). Inventory indicators and data are
business in a sector that features linkage to
shown in Appendix 1.
conflicts? Technology development is to assess if
an organization promotes for efficient and
environmental sound technologies. If the answer
is yes, I will further explore how Boffin and
Universtar promote technology development.
Stakeholder
Corruption subcategory is mainly to understand
categories
if how Boffin and Universtar have policies or
Worker/
Freedom of Association and
programs to prevent corruption.
Employee
Collective Bargaining
26
Subcategories
city respectively (Spillemaeckers et al., 2004).
Child Labor
Fair Salary
Working Hours
Inventory indicators that are utilized to provide
Forced Labor
information for BOD online monitor’s social
Equal Opportunities/
impacts and companies’ performances
chosen based on the goal and scope of the study.
Discrimination
Inventory data is then guided by subcategories
Health and Safety
Social
and inventory indicators. Detailed inventory
Benefits/Social
indicators and inventory data for enterprises are
Security
Consumer
shown in Appendix 1.
Health & Safety
Feedback Mechanism
Both generic and site specific data are gathered
Consumer Privacy
through
Transparency
Public
commitments
data that is collected during the study rather than
getting from published reports, is more often
development
used in evaluating the product’s direct impacts.
Prevention & mitigation of
armed conflicts
4.2.3 Life Cycle Impact Assessment
Technology development
Life cycle impact assessment phase includes
Corruption
&
Community
conditions
healthy
selecting impact categories, characterization
living
methods and models; linking inventory data to
impact
Community engagement
of
subcategories
subcategory
Local employment
Respect
enterprise
generic data will be utilized instead. Primary
Contribution to economic
Safe
searching,
Only if site specific data cannot be collected, the
to
sustainability issues
Local
web
documentations, questionnaires and interviews.
End of life responsibility
Society
are
indicator
and
calculating
results
present
(UNEP/SETAC, 2009). This study selects
indigenous
midpoint impact categories that contain human
rights
rights, working conditions, health and safety,
Table 2 Stakeholder categories and subcategories
governance, and socio-economic repercussions.
(Adapted from UNEP/SETAC, 2009)
Results of these impact categories demonstrate
companies’ social impacts and performances,
4.2.2 Life Cycle Inventory
which can be presented to interest stakeholders.
A main purpose of life cycle inventory analysis
On the basis of the understanding of stakeholder
is to collect data on the account of a study’s goal
categories and subcategories, I aggregated
and scope (UNEP/SETAC, 2009). This thesis
stakeholder
intends to collect site specific data for BOD
subcategories
into
impact
subcategories (Table 3).
product in designing and manufacturing phases,
which means that the data is specifically for
BOD online monitor made by Universtar and
Boffin enterprises. Since social impacts are
Impact
assessed according to enterprise’ behaviours
categories
towards its stakeholders, organizations involve
Human rights
in this SLCA study are Boffin and Universtar
Subcategories
Freedom of Association
and Collective Bargaining
Companies, located at Wuhan city and Shenzhen
27
Child Labor
companies’ performances acts as the medium
Forced Labor
between
Equal
processes (Dreyer et al., 2006), BOD online
opportunities/Discriminati
monitor’s social impacts are represented by
on
enterprises’ social performances. Since the major
Respect
of
a
product’s
social
impacts
and
actors in designing and manufacturing stages are
indigenous
rights
Boffin
Working
Fair Salary
enterprises’ performances on human rights,
conditions
Working Hours
working
Universtar
conditions,
companies,
health
and
two
safety,
governance and socio-economic repercussions
Health and Safety
Social
and
are demonstrated.
Benefits/Social
Security
Health
and
safety
Human rights
Health & Safety
Human rights category in this thesis contain five
Consumer Privacy
aspects, including freedom of association and
Safe & healthy living
collective bargaining, child labour, forced labour,
conditions
Governance
equal opportunities/discrimination, and respect
Feedback Mechanism
of indigenous rights. Two companies work well
Transparency
in the last four aspects and are weak in the
freedom of association and collective bargaining
Corruption
Socio-economic
Public commitments to
repercussions
perspective. The Chinese law identified and
intensively regulated Freedom of association,
but neither specifically protected nor prohibited
collective bargaining (ITUC, 2012). There is
development
only one organization, namely All China
Prevention & mitigation
Federation of Trade Unions (ACFTU), is
of armed conflicts
recognized by the Chinese law (ITUC, 2012).
According to trade union law of the People’s
Republic of China (2001), a basic-level trade
Local employment
union committee should be established if an
enterprise/ pubic institution/government agency
Table 3 Social Impact Categories
has more than 25 employees. If the number of
Characterization
employees is less than 25, the enterprise could
The social impact assessment methodology is
set up committee itself or jointly establish with
still under development and there are not unite
two members of the unit. For both Boffin and
characterization
for
connecting
Universtar companies, they admit workers to
impact
categories
establish and join organizations and permit
(UNEP/SETAC, 2009; Chen & Froukje, 2010).
collective bargaining which fiercely obey the
There are two major types of characterization
Chinese law. However, since the number of
models, of which one is to summarize and
employees in Boffin is less than 25, there does
describe inventory data within one category,
not have a trade union in Boffin Company. As
while the other is more complex with additional
for Universtar, even though a trade union is set
information used(UNEP/SETAC, 2009). For this
up and all employees are required to join, few
study, impact categories are presented by
activities have been held. There neither have any
subcategories
models
and
descriptive summaries. For the reason that
28
child labour nor forced labour in both Boffin and
is any emergency situation that is dangerous for
Universtar Company. At present, the youngest
staffs’ safety, employees are encouraged to
employee in Boffin is 28 years old and in
protect them and evacuate from the workplace.
Universtar is 22 years old, of which are older
As workers are in the environmental protection
than national requirement of 18 years old. Both
sector, there are not occupational diseases in
Boffin and Universtar commit to provide equal
these two companies. Employees have risk
opportunities to females and males. The basic
prevention trainings before participating in
salary is the same for men and women.
working, but no formal agreements on health
Nevertheless, Universtar does not offer parental
and safety are signed by two organizations at
leaves to its male workers, while all employees
present. In terms of social benefit and security,
are entitled to have ninety-day parental leave in
companies provide social insurance, basic
Boffin Company. Since operations are not built
endowment insurance, unemployment insurance,
near indigenous people, two enterprises do not
paid maternity leave and other social insurances.
have impact on respecting indigenous rights.
There are training programs or opportunities for
further study abroad. Nevertheless, counseling
Working conditions
programs and treatment programs to support
Fair salary, working hours, health and safety of
workers and their families have not been
employees, and social benefits/social security
launched yet.
are included in working condition category. In
general, these four aspects are mannered well by
Health and safety
Boffin
From
This impact category consists of health& safety
December 1 , 2011, the minimum wage in
of consumers, consumer privacy and safety and
Wuhan city is 1100RMB/month (鄂政发 69 号,
healthy living conditions. Except consumer
2011). The average wage in Boffin Company is
privacy that is relatively weak in two companies,
3000RMB/month and the new entries’ wage in
Boffin
Wuhan office of Universtar is between 1500 and
providing health and safety products to their
2000 RMB/month, which are all higher than the
consumers and good living conditions to local
minimum wage in Wuhan. The Chinese labour
communities. Health& safety of consumers is a
law mandates a 40-hour standard workweek with
critical important value for corporations. Boffin
one day rest per week. Premium is paid for
and
overtime work and excessive working hours
improvements of health and safety impacts of
should be less than 36 hours per month in China
products and services throughout products and
(U.S Department of State, 2012). The average
services’ whole life cycle, of which from product
number of working hours for two companies is
concepts to products’ reuse and recycling. The
eight hours per day and forty hours per week.
total number of incidents of non-compliance
Overtime working is not permitted in both
with health and safety is zero. Even though two
enterprises; therefore, there does not provide
companies do not get any complaints related to
premium pay for overtime work in Boffin and
consumer privacy, the internal management of
Universtar companies. For the reason that
protecting consumer privacy fail to be explicated
companies are situated at industrial park with
in two companies. Asenvironmental protection
professional security personnel, Boffin and
enterprises, Boffin and Universtar never use
Universtar
hazardous
and
Universtar
Companies.
st
do
not
recruit
security
staffs
and
Universtar
Universtar
are
committed
Companies
substances.
Products
to
evaluate
of
two
themselves. But they commit to provide safe and
companies instead of having negative impacts on
healthy occupations to their employees. If there
local communities, they are beneficial for the
29
environment.
Shenzhen
sustainable
governments
actions.
to
For
incent
instance,
their
Boffin
Governance
Company is able to use its office for free for two
The subcategories of governance comprise
years. The economic impacts can be presented
feedback mechanism, transparency, end of life
by the number of direct jobs the company
responsibility
exist
created and some other indicators. For Boffin
feedback mechanism in two companies, but the
Company, it offers eight job positions at present.
end of life responsibility and corruption are
The total investment of Boffin is 3 million RMB
almost ignored by these two actors. Customers
at present and since the BOD online monitor is
in Boffin Company can make complaints
still in test,
through phone calls, while Universtar not only
communities and local economic. However,
accepts grievances made by telephones, but also
according to Boffin’s internal report, 200 job
sends engineers to inspect and fix products on a
positions will be offered when the product is
regular basis. Two companies have not received
produced. The total investment of Universtar is
any consumer complaints regarding transparency
400,000,000 RMB and it provides 1500 job
due to their business operations types. They sell
positions in China. There does not exist armed
products and provide environmental protection
conflicts in the region; in the meantime, products
services, which have few associations with
and companies do not contribute or mitigate any
consumer privacies. Both organizations fail to
conflicts. As high-technology companies, Boffin
build
that
and Universtar enterprises put more emphasis on
providing clear information on end-of-life
developing products. For example, the BOD
options to customers. They are responsible for
online monitor is one of the newest inventions in
selling and inspecting products and only
environmental
customers have the rights to dispose products.
stakeholder
Neither Boffin nor Universtar recalls and
customers, suppliers and governments, connect
recovers their products. Corruption is not a key
with companies by different means. Nevertheless,
theme for two enterprises and there is not
Boffin and Universtar neither hold any meetings
formalized
preventing
with community stakeholders, nor supporting for
corruption, nor employees being trained in
community initiatives. There are no common
anti-corruption policies and procedures.
practices for hiring senior managers from the
and
internal
corruption.
management
commitment
There
systems
on
there
are
industry.
groups,
few impacts on
The
community
as:
employees,
such
local communities and Boffin and Universtar
Socio-economic repercussions
select
suppliers
Social-economic repercussions impact category
reputations.
by
costs
and
suppliers’
contains public commitments to sustainability
issues, contribution to economic development,
4.2.4 Interpretation
prevention& mitigation of armed conflicts,
Significant social issues
technology
community
Scoring system is utilized for interpreting
engagement and local employment. Universtar
positive and negative impacts. By ranking and
and Boffin fail to present public commitments to
calculating the data, significant issues might be
sustainability issues, but they are committed to
discovered. Significant social issues are key
protecting and improving the environment. Since
findings and concerns from a study, such as the
the Chinese government’s substantive supports
most beneficial social impacts or unexpected
to environmental protection industry, research
negative effects (UNEP/SETAC, 2009). By
development fund is provided by Wuhan and
finding out significant issues, we can know
development,
30
hinder factors for sustainable development and
monitor has positive effects on the category; if
know how to optimize BOD online monitor’s
the score is between -0.5 and 0, it means that
processes and improve social performances at
BOD online monitor has negative effects on the
company level.
category; if the score is smaller than -0.5, it
means that BOD online monitor has very
The positive and negative effects can be
negative effects on the category; and if the score
evaluated by categories and subcategories’
equals to 0, it means that BOD online monitor
scores. Specifically,
means that a product
does not have positive and negative effects on
or a company has positive effects on the
the category. All impact categories in designing
category;
and manufacturing processes are evaluated with
means that a product or a
company has negative effects on the category,
and
colours.
means that a product or a company
Impact
categories
reflect
a
BOD
online
monitor’s social impacts on human rights,
working
conditions,
health
and
safety,
governance, and socio-economic repercussions.
This thesis evaluates BOD online monitor’s
designing and manufacturing processes. Hence,
Manufacturing
Significant issues of Impact Categories
Designing
the category.
Impact
categories
does not have positive and negative effects on
Human rights
0.4
0.325
Working conditions
0.47
0.49
Health and safety
0.67
0.67
Governance
-0.125
0.0625
Socio-economic
0.36
0.25
repercussions
BOD online monitor’s social impacts on human
rights, working conditions, health and safety,
Table 4 Scores of Impact categories
governance and socio-economic repercussions
Note:
very positive effect
are evaluated from designing and manufacturing
positive effect
processes respectively. In this way, I can
indifferent effect
compare two processes’ results. If the BOD
negative effect
online monitor has high scores in one category, it
very negative effect
means that BOD online monitor has positive
effects on that social aspect. If the product has a
Impact
minus score in a process, it shows where to
categories’ results
show
that
the
maximum value of impact categories is 0.67
optimize the BOD online monitor and to
while the minimum score is -0.125. There is not
improve the product’s positive social impacts. I
very
also use colours to present different scores.
negative
manufacturing
Results of impact categories and subcategories
effect
in
stages.
But
designing
the
value
and
of
are demonstrated in Appendix 4.
governance impact category in designing stage is
Table 4 presents BOD online monitor’s impact
monitor
-0.125< 0, which indicates that BOD online
having
negative
impacts
on
the
governance aspect in designing process. BOD
categories’ scores. It indicates the product’s
online monitor in both stages have high positive
impacts on the five aspects. If the score is larger
impact on health and safety conditions, and have
than 0.5, it means that BOD online monitor has
positive effects in categories of human rights and
very positive effects on the category; if the score
working
is between 0 and 0.5, it means that BOD online
conditions
repercussions.
31
The
and
socio-economic
significant
issues
are
governance impact category in the designing
monitor is needed for improving so as to
process and health and safety impact category in
promote sustainability for product’s life cycle.
both processes. Designing stage of BOD online
0,4
0,3
0,2
0,1
-0,1
-0,2
-0,3
Freedom of…
Child Labor
Forced Labor
Equal opportunities/…
Respect of indigenous…
Fair Salary
Working Hours
Health and Safety
Social Benefits/Social…
Health & Safety
Consumer Privacy
Safe & healthy living …
Feedback Mechanism
Transparency
Corruption
Public commitments to…
Contribution to…
Prevention &…
Technology…
Local employment
Designing
0
Manufacturing
Fig. 4 Positive and negative effect in designing and manufacturing stages
Fig.4 demonstrates BOD online monitor’s
community engagement and local employment
positive
impact
are issues needed for improvements as they have
subcategories in designing and manufacturing
all negative effects at present. They are the
stages. Scores in designing and manufacturing
hindering factors for sustainable development.
and
negative
effects
on
processes are shown as blue and red color
respectively. It is drawn according to 22
According to both Table 4 and Fig.4, we can
subcategories’ scores and aims to offer clear
observe that BOD online monitor has very
comparisons
and
positive impact on health and safety due to the
manufacturing process. Based on five impact
high scores of health &safety and safe & healthy
categories,
between
four
vertical
designing
22
living conditions. The value of governance
subcategories into five portions in proper order.
lines
divide
impact is very low as a negative effect of
Subcategories in the first section belongs to
corruption.
human rights category, the rest four respectively
belongs to category of working condition, health
Significant issues of Stakeholder Categories
and safety, governance, and socio-economic
Boffin and Universtar are two companies
repercussions. Subcategories with high scores
evaluated in this case study. They have impacts
mean positive effects. Subcategories with low
on their stakeholders of worker/employee,
scores are hindering factors for sustainable
consumer,
development. In general, two stages have similar
Stakeholder categories’ scores can be used for
society
and
local
community.
impacts on most part of subcategories, while
assessing
designing process works better in terms of equal
Significant issues are discovered for improving
opportunities/discrimination
social
Boffin and Universtar’s social performances. If a
benefits/social security aspects. Freedom of
company has a high score in one stakeholder
association and collective bargaining, health and
category, it means that the company has positive
safety
effects on that stakeholder and has good social
of
working
and
conditions,
corruption,
32
companies’
social
performances.
performances in that aspect. If a company has a
and
lays
factors
which
hinder
sustainable development achievements. The
results of stakeholder categories and stakeholder
subcategories are demonstrated in Appendix 5.
Table
5
presents
Boffin
and
Universtar
Worker/Employee
0.132
0.112
Consumer
0.05
0.075
Society
0.116
0.129
Local Community
0.021
-0.021
companies’ stakeholder categories’ scores. It
Table 5 Scores of Stakeholder categories
indicates Boffin and Universtar companies’
social
performances
on
four
Note:
very positive effect
stakeholder
positive effect
categories. If a score is larger than 0.5, it means
indifferent effect
that Boffin or Universtar has very positive
negative effect
effects on the category and has very good social
very negative effect
performances; if the score is between 0 and 0.5,
it means that Boffin or Universtar has positive
By analysing stakeholder categories’ results, we
effects on the category and has good social
can find that stakeholder categories’ results
performances; if the score is between -0.5 and 0,
range from -0.021 to 0.132. Universtar has better
it means that Boffin or Universtar has negative
social performances than Boffin in general. Both
effects on the category and has bad social
companies
performances; if the score is smaller than -0.5, it
on
society
that Universtar should improve its performances
it means that Boffin or Universtar does not have
on local community. The significant issue in here
positive and negative effects on the category. All
evaluated
effects
and
negative impacts on local community. It means
social performances; and if the score equals to 0,
are
positive
consumer
stakeholders, but Universtar Company has
negative effects on the category and has very bad
categories
have
worker/employee,
means that Boffin or Universtar has very
stakeholder
Universtar
improve
Boffin
category, it is the part where a company should
Stakeholder
categories
minus score or low score in one stakeholder
is local community.
with
colours.
33
0,3
0,2
0,1
-0,1
-0,2
-0,3
Boffin
Freedom of Association…
Child Labor
Fair Salary
Working Hours
Forced Labor
Equal Opportunities/…
Health and Safety
Social Benefits/Social…
Health & Safety
Feedback Mechanism
Consumer Privacy
Transparency
Public commitments to…
Contribution to economic…
Prevention & mitigation…
Corruption
Safe & healthy living…
Local employment
Respect of indigenous…
0
Universtar
Fig. 5 Positive and negative effect in Boffin and Universtar companies
Fig. 5 demonstrates stakeholder subcategories’
and local employment aspects.
positive and negative effects in Boffin and
Universtar companies. Boffin and Universtar
According to both Table 5 and Fig.5, Boffin has
companies’ scores are shown as blue and red
better
color respectively. The figure is drawn according
worker/employee,
to 22 subcategories’ scores and aims to discover
community. Universtar is better in the society
aspect for the reason that it has less negative
achievements as well as offer clear comparisons
impacts on corruption. The value of local
between Boffin and Universtar. Three vertical
community is very low in Universtar Company
lines divide 22 subcategories into four portions
due to its negative impact on local engagement.
social
performances
consumer
regarding
and
to
local
in proper order. Subcategories in the first section
belongs to worker/employee category, the rest
Evaluation
respectively belongs to category of consumer,
The completeness is to check if all important
society and local community. Subcategories with
issues and data are included in a study
high scores help to explain why their father node
(UNEP/SETAC, 2009). For this case, we
category has positive effects. Subcategories with
contained five out of six impact categories and
low scores are hindering factors for sustainable
four out of five stakeholder categories as the
development. Fig.5 indicates that two companies
UNEP/SETAC
have positive impacts on stakeholders in most
Important issues such as human rights and
aspects, but are weak in freedom of association
working conditions were well covered in this
and collective bargaining, health and safety of
case study. Since it is a case study at site-specific
working conditions,
community
and company level, 40 inventory indicators and
engagement and local employment fields. In
90 inventory data were designed for the
general, two enterprises have similar impacts on
assessment. Indicators and inventory data were
most of the subcategories. Among five hindering
selected from SETAC (2009) and GRI indicators
factors, Boffin is weak in corruption part, while
for accuracy and reliability concerns. Some
Universtar needs to improve its performances
inventory data was not available at Boffin and
from health and safety of working conditions
Universtar
corruption,
34
(2009)
Company
guideline
for
the
suggests.
reason
that
companies did not know about those practices or
factors that lead to negative impacts on
have
The
governance should be improved. Boffin and
available data were able to present companies’
Universtar companies’ social performances have
social performances in details and to discover
positive impacts on workers, employees and
significant issues in this case study.
society, but it is necessary to provide better
different
management
systems.
services on consumers and local communities
The consistency is to prove if models and
for more sustainable business.
methods are suitable on account of goal and
scope of a case study (UNEP/SETAC, 2009).
Involvement of stakeholders
This study’s goal is to understand corporations’
Stakeholders involved in this study include
sustainable
exploring
workers/employees, managers in companies,
enterprises’ negative and positive social impacts
BOD online monitor’s potential users and
on stakeholders along BOD online monitor’s life
government
cycle. The scope constrains in BOD online
collected from potential users is not needed to be
monitor’s design and manufacturing stages.
used at last.
business
levels
by
officers.
Nevertheless,
data
Models and methods were appropriated in this
case study since the goal was achieved. Social
impacts were well explored and enterprises’
5. Conclusion
negative and positive social impacts were
disclosed. The scoring system was used to
explore significant issues for the case study. This
thesis assumed that all indicators at the same
5.1
Corporations’ CSR level
level had equal weights, and all inventory were
Business CSR levels in chapter two and
measured by a scale of -1 to 1. Significant issues
corporations’ CSR levels in chapter four
and social effects were shown visually by
answered the first research question: How can a
coloring. If weight measuring, scoring and
business’ CSR level be assessed?
coloring methods were changed, the result would
be different. Nevertheless, the goal of this study
I first identified business CSR levels according
was to explore significant issues rather than
to sustainable development concepts. CSR levels
comparing
methods’
would be evaluated from three dimensions:
accuracies; therefore, methods I used were able
conceptual framework, process and end goal.
to achieve their missions.
The conceptual framework of business is to
various
assessment
evaluate companies’ principles on conducting
Conclusion
business.
By utilizing social life cycle assessment method
The
process
means
that
how
companies apply principles into their business
to evaluate BOD online monitor’s social impacts
operations. The end goal is to know what
at designing and manufacturing stages, we can
specific problems companies have fixed.
conclude that the product’s significant issues are
governance
at
Universtar’s
social
designing
process
and
I sequenced CSR levels from 1 to 3. CSR level 1
local
was to run a business only for profitability. CSR
community aspect. Human rights, working
level 2 required companies are responsible to
conditions and health and safety which are weak
their stakeholders. CSR level 3 not only required
parts for Foxconn Company, are not significant
companies themselves to undertake corporate
issues in BOD online monitor’s designing and
responsibilities, but also expanded requirements
manufacturing stages. In order to make BOD
to companies’ suppliers. CSR level 1 has the
online monitor’s life cycle more sustainable,
lowest standard and CSR level 3 has the highest
performances
in
35
standard. I did not continue to analyse a higher
sustainable development?
CSR level if a company failed to qualify with the
By conducting a BOD online monitor empirical
low level’s standards. The result cannot present
case study, I found that enterprise’s social
corporations’
CSR
performances were able to be interpreted in the
performances in details, but it is able to show
social life cycle assessment’s third stage. In the
that in which dimension a company performs
first stage of the SLCA procedures, I identified
best and in which aspects are weak. In this way,
social categories, subcategories and indicators
a company finds general directions to improve
according to the study’s goal and product’s scope.
its CSR performances.
Then, I collected data based on indicators. The
positive
and
negative
third stage, namely life cycle impact assessment
Further, I evaluated Boffin and Universtar
stage, was the place where demonstrating
companies according to this idea. I found that
corporations’ social performances.
Boffin and Universtar companies were at level 2
in both conceptual framework and process
However, factors that hindering sustainable
dimensions. Their CSR performances were
development
below level 2 from process perspective. That is
discovered at the third phase. Instead, they were
to say, two corporations had cognitions of
found in the interpretation part. Interpretation
pursuing sustainable business; however, they
was the last step for a SLCA study, which
were weak in implementing goals. They could
contained scoring and calculating indicators.
put more emphasis on improving their CSR
Stakeholder
performances from process perspective.
companies’ impacts on stakeholder categories
achievements
categories’
could
scores
not
be
presented
and demonstrated stakeholder subcategories’
5.2
positive
SLCA on BOD online
and
negative
effects.
Stakeholder
subcategories’ low scores, namely negative
effects, were corporations’ hindering factors.
monitor
Social life cycle assessment in chapter two and
The empirical result in life cycle assessment
SLCA on online monitor in chapter four
stage disclosed Boffin and Universtar companies’
addressed
research
social performances from human rights, working
questions. According to UNDP/SETAC (2009),
conditions, health and safety, governance, and
SLCA result is able to present enterprise’s
socio-economic
improvements of social
According to the result from interpretation stage,
the
second
and
third
performances
and
repercussions
aspects.
evaluate a product’s potential positive and
both
negative impacts along its life cycle. Hence, in
stakeholders of worker/employee, consumer and
order to show how to utilize social life cycle
society, but Universtar Company had negative
assessment tool to disclose corporations’ social
impacts on local community. The result also
performances and product’s social impacts, I
indicated that factors hindering Boffin and
described
procedures
Universtar companies to be sustained included
explicitly in the conceptual framework chapter.
freedom of association and collective bargaining,
After that, I evaluated BOD online monitor
health and safety of working conditions,
product and corporations on the basis of this
corruption, community engagement and local
method.
employment. To be more specific, Boffin was
SLCA’s
scope
and
companies
had
positive
effects
on
weaker in corruption part, while Universtar
How can the social life cycle assessment method
needed to improve its performances from health
be
and safety of working conditions and local
used
to
performances
disclose
and
enterprise’
factors
that
social
employment aspects.
hinders
36
products and providing services. However, two
How can social life cycle assessment be used to
companies were relatively weak in applying their
improve product’s social impacts?
statements.
Results in interpretation stage tackled this
question. The product’s scores of impact
The second research question implied that SLCA
categories and subcategoriescould demonstrated
method was able to discover corporations’ social
a product’s high scores and low scores in
performances according to impact categories at a
different phases. If a product has a minus score
product’s life cycle impact assessment stage and
or low score in a process, we can improve a
disclose factors which hindering sustainable
product’s social impacts by optimizing this
development
process.
stage. Corporations were able to be connected by
achievements
at
interpretation
a product and SLCA method was able to disclose
As for the case study, BOD online monitor had
and
negative impacts on the governance aspect in
performances at the same time. For the case
designing process. The negative effect of
study, Boffin and Universtar companies were
corruption value was the reason that made BOD
connected by BOD online monitor product.
online
on
Their social performances were simultaneously
governance. In order to improve BOD online
demonstrated from human rights, working
monitor’s social impacts, factors that lead to
conditions, health and safety, governance, and
negative impacts on governance at process stage
socio-economic repercussions aspects. Factors
should be ameliorated.
that hindering Boffin and Universtar companies
monitor
has
negative
impact
to
5.3
compare
be
several
sustainable
corporations’
included
social
freedom
of
association and collective bargaining, health and
Overall Purpose
safety
The study was conducted at a situation that
of
working
conditions,
corruption,
community engagement and local employment.
sustainable business was urgently needed in
China and social life cycle assessment method
The third questions indicated that the product’s
was encouraged to test case studies. The purpose
scores of impact categories and subcategories in
of this thesis was to understand how business
SLCA’s last stage could disclose improvements
can contribute to sustainable development and
of product’s social impacts. The empirical study
explore
cycle
showed that corporations should optimize BOD
assessment. The thesis designed three research
online monitor product’s manufacturing process
questions according to the overall purpose and
by improving corruption aspect so as to decrease
the purpose was reached after addressing these
BOD online monitor’s negative social impacts
questions.
and increase positive impacts.
The first research question embedded sustainable
In a whole, by evaluating CSR level from three
development concept in identifying business
dimensions, companies are able to find their
CSR levels. According to Strange and Bayley’s
weak parts and perform better in a specific
(2008) descriptions of sustainable development,
dimension towards sustainability. SLCA method
the thesis evaluated corporations’ performances
was
from three dimensions: conceptual framework,
performances, discover underlying factors that
process and end goal. The empirical case study
might hinder corporations’ ability to contribute
showed that Boffin and Universtar companies
to sustainable development and improve a
committed to take social responsibilities and
product’s social at the same time. It enables
achieved
corporations
mechanisms
sustainable
of
social
goals
by
life
producing
37
able
to
disclose
to
enterprises’
improve
their
social
social
performances as well as ameliorate a product’s
supports. You leaded me in this wonderful
social impacts.
project and helped me to contact the nice
supervisor and officers in Wuhan city. You gave
5.4
me the chance to start my thesis successfully.
Future research
This research contributes to enriching social life
Hubei Boffin Biological technology, a company
cycle assessment case study in site-specific and
provides me a place for my thesis. I would like
company level. The study’s contribution is also
to thank Ms Li Qiong in Boffin Company. You
to explore social significant issues by utilizing
not only helped me with my thesis, but gave the
social life cycle assessment and improve
knowledge that can be used for my whole life. It
corporations’ social performances.
is a wonderful memory to stay three months with
all staffs in Boffin Company. And thanks staffs
In this study, I divided business CSR into three
in Boffin and Universtar companies who helped
levels and limited BOD online monitor’s scope.
me for answering my interviews, teaching me
Only designing and manufacturing stages of
knowledge of BOD online monitor and sending
BOD online monitor and two corporations were
me valuable reports and materials. Thanks for
evaluated. Future researches may broaden scopes
your supports and help.
and contain multiply scales of corporations in
aiming to have more comprehensive analysis.
Mr Li Pu, Ms Wang Shaohua, Mr Chen
Changfan, Ms Doris Jinwen Li, thanks for
encouraging me doing thesis in China and
helping me to contact Boffin Company.
6. Acknowledgements
Andrea Diaz Osorio, Chen Yuliu, Feng Fen, Lin
This master thesis is part of the degree as Master
Huayi, Guo Haichao, Zhang Hengduan, Zhang
of Science at Uppsala University. It covers 30
Wenquan, Zhang Yueting, my dear friends.
academic credits. This master thesis is written
Thanks for your valuable suggestions with my
for Borlänge Business Unit.
thesis.
Many people helped me to complete this mater
Mr Wan Jun, Ms Wu Min, my father and my
thesis, and I would like to take this opportunity
mother. Thanks for bringing me up and
to express my sincere gratitude to all who
supporting all my decisions. Thanks for your
contributed to this study. A special thanks to:
kindness. I love you.
Dr Mikael Johnson, my supervisor at Karlstads
University,
who
assists
my
thesis
encouragement throughout the work.
7. Reference
and
You are
always there to give me valuable advices when I
鄂政发〔2011〕69 号,2011. 关于调整湖北省最
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Appendix 1— Inventory data
Employee/Worker
Subcategories
Freedom of Association
and Collective Bargaining
Child Labor
Inventory indicator
Country
Type of operations
Child and young workers
Minimum wage
Fair Salary
Short-term employee
benefits
Post-employment
benefits
Other long-term
employee benefits
Training and Education
Working Hours
Average no. of working
hours
Arrangements
Forced Labor
Forced Labor
Equal opportunities
Discrimination
Anti-discrimination
Health and Safety
Security personnel
Inventory data
Does there have legislation for the freedom of association in
country?
Do the employees have the right to exercise freedom of
association and collective bargaining?
No. of child workers
Working conditions for young workers
Is the operation identified as having significant risk for incidents
of child labor?
Reported incidents of child labor
Staff salary
Contributions to defined contribution pension plans
Entry level wage breakdown by gender
Wages/salaries
Short-term compensated absences (such as paid annual leave and
paid sick leave)
Profit-sharing and bonuses payable within twelve months after
the end of the period in which the employees render the related
service
Non-monetary benefits (such as medical care, housing, cars and
free or subsidized goods or services) for current employees
Retirement benefits (pensions)
Post-employment life insurance
Post-employment medical care
Life insurance; Health care; Disability/invalidity coverage;
Parental leave; Retirement provision; Stock ownership; and
Others.
Total hours devoted to training personnel within each employee
category
Total hours devoted to training personnel per gender
Average no. of working hours
Respect of contractual agreements concerning overtime
Clear communication of working hours and overtime
arrangements
Is the operation identified as having significant risk for incidents
of forced or compulsory labor?
Do workers voluntarily agree upon employment terms?
Is birth certificate, passport, identity card, work permit or other
original documents belonging to the worker retained or kept for
safety reasons by the organization neither upon hiring nor during
employment?
Are workers bonded by debts exceeding legal limits to the
employer?
Are workers free to terminate their employment within the
prevailing limits?
Does organization have presence of formal policies on equal
opportunities?
Ratio of basic salary of men to women by employee category.
Incidents of discrimination on grounds of race, color, sex,
religion, political opinion, national extraction, or social origin
Total number of incidents of discrimination during the reporting
period
The number of employees by gender that were entitled to
parental leave.
The number of employees by gender that took parental leave and
the number of employees who returned to work after parental
leave ended, by gender.
The total number of security personnel
The percentage of security personnel who have received formal
training in the organization’s policies on, or specific procedures
for, human rights issues and their application to security.
44
Whether training requirements also apply to third party
organizations providing security personnel
Occupational safety and
health
Social Benefit/Social
Security
Social Benefit
Social Security
Rates of injury in plant and rates of injuries in industry sector
Risks of occupational diseases
Total number of work-related fatalities
Does the plant have sanitations?
Formal agreements (either local or global) with trade unions
cover health and safety. (Yes/No) If yes, report the extent to
which various health and safety topics are covered by local and
global agreements signed by the organization.
Are adequate general occupational safety measures taken?
Does the organization have education, training, counseling,
prevention and risk control programs in place to assist workforce
members, their families, or community members regarding
serious diseases?
List and provide short description of social benefits provided to
the workers (eg. Health insurance, pension fund, child care,
education, accommodation etc.)
Does the organization have education/training program(s) to
assist work force members, their families or community
members?
Does the organization have counseling program(s) to assist work
force members, their families or community members?
Does the organization have prevention/risk control program(s) to
assist work force members, their families or community
members?
Does the organization have treatment program(s) to assist work
force members, their families or community members?
Does the organization violate obligations to workers under labor
or social security laws and employment regulations?
Consumer
Subcategories
Health & Safety
Inventory indicator
Quality of labels of
health and safety
requirements
Number of consumer
complaints
Feedback Mechanism
Grievance mechanisms
Internal management
Consumer Privacy
Transparency
Complaints
Product and service
labeling
Certification
Inventory data
For development of product concept, whether the health and
safety impacts of products and services are assessed for
improvement.
For R&D, whether the health and safety impacts of products and
services are assessed for improvement.
For certification, whether the health and safety impacts of
products and services are assessed for improvement.
For manufacturing and production, whether the health and safety
impacts of products and services are assessed for improvement.
For marketing and promotion, whether the health and safety
For storage distribution and supply, whether the health and
improvement.
For use and service, whether the health and safety impacts of
For disposal, reuse or recycling, whether the health and safety
The total number of incidents of non-compliance with the health
and safety of products and services
Existing formal organizational grievance mechanisms.
The total number of resolved grievances
Strength of internal management system to protect consumer
privacy, in general
Number of consumer complaints related to breach of privacy or
loss of data within the last year
Number of complaints by regulatory bodies related to breach of
consumer privacy or loss of data within the last year
Consumer complaints regarding transparency
Did the organization obtain any certification/label for the
product or site?
Do internal management systems ensure that clear information is
provided to consumers on end-of-life options (if applicable)?
45
Annual incidents of non-compliance with regulatory labeling
requirements.
Society
Subcategories
development
armed conflicts
Corruption
Inventory indicator
Sustainability
Employment creation
Conflicts in region
Mitigation
Corruption
Inventory data
Presence of publicly available documents as promises or
agreements on sustainability issues
Actions taken to support a sustainable development.
Does it existence of governmental incentives?
No. of direct Jobs
Explanation of the current or expected impacts (positive or
negative) on communities and local economies.
Do armed conflicts exist in the region?
Do the product and/or company contribute or mitigate them? If
yes, how does the product act to mitigate?
What kind of preventing and mitigating actions are realized?
Does the product contribute to technology development? If yes,
how?
Formalized commitment of the organization to prevent
corruption, referring to recognized standards.
Total number of incidents in which employees were dismissed or
disciplined for corruption
Are employees trained in organization's anti-corruption policies
and procedures?
Actions taken in response to incidents of corruption.
Local Community
Subcategories
Inventory indicator
Safe & healthy and secure
living conditions
Identify the exposure of
the local community to
operations due to higher
than average use
of/impact on shared
resources
Proximity to operations
Community stakeholder
Community meeting
Organizational support
Senior management
hired from the local
community at significant
locations of operation.
Local employment
Employees/Workers
hired from the local
community
Supplier selection from
the local community
Respect of indigenous
rights
Respect of indigenous
rights
Inventory data
Health and safety effects caused by operation
Use of hazardous substances that impact on the environment and
human health in general, and specifically reproductive health
Does the local community near operations? Is it easily to access?
Diversity of community stakeholder groups that engage with the
organization.
Number and quality of meetings with community stakeholders.
Organizational support (volunteer-hours or financial) for
community initiatives.
Report whether the organization has a global policy or common
practices for granting preference to local residents when hiring
in significant locations of operation. If so, report the proportion
of senior management in significant locations of operation from
the local community. Use data on full-time employees to
calculate this percentage.
Report whether the organization has a global policy or common
practices for granting preference to local residents. If so, report
the proportion of employees/workers from the local community.
Use data on full-time employees to calculate this percentage.
Indicate the factors that influence supplier selection (e.g., costs,
environmental and social performances) in addition to their
geographic location.
Are there existing indigenous people in the operation area?
If yes, does the operation impact indigenous rights?
46
Appendix 2— Inventory result of Boffin Company
Employee/Worker
Subcategories
Inventory indicator
Country
Type of operations
Child Labor
Inventory data
Does there have legislation for the freedom of association
in country?
Is the operation identified as having significant risk for
incidents of child labor?
Staff salary
Minimum wage
Fair Salary
Short-term employee benefits
Wages/salaries
Short-term compensated absences (such as paid annual
leave and paid sick leave)
Profit-sharing and bonuses payable within twelve months
after the end of the period in which the employees render
the related service
47
Result
Chinese labor laws fall short of international standards. There
is no real freedom of association, as only one “workers”
organization is recognized in law, the All China Federation of
Trade Unions (ACFTU). There are no comprehensive national
level regulations on collective bargaining procedures, but only
on collective contracts. However, a collective contract
established in line with the regulations is legally binding.
There have also been considerable efforts to set up a dispute
resolution system in the last decade.
Resource: http://survey.ituc-csi.org/China.html#
Employees have rights to exercise freedom of association and
collective bargaining on the basis of Chinese law.
0
The minimum age of employee in Boffin is 28. Right now
there does not have young workers in Boffin, but Boffin
admits to provide same working condition to all its employees.
No.
Boffin does not and will not hire child labor at present and in
the future.
The average of staff salary in Boffin is 3000RMB per month.
Higher than the minimum wage in Wuhan city.
The pension plan of Boffin is based on the Law of the People’s
Republic of social insurance.
Resource:
http://www.gov.cn/flfg/2010-10/28/content_1732964.htm
3000RMB for both female and male
N/A. There does not have short-term employees in Boffin.
N/A
N/A
Score
-1
-1
1
1
1
1
1
1
1
0
0
0
Non-monetary benefits (such as medical care, housing, cars
and free or subsidized goods or services) for current
employees
Post-employment benefits
Other long-term employee
benefits
Working Hours
Arrangements
Forced Labor
Forced Labor
Equal opportunities
Discrimination
Anti-discrimination
Life insurance; Health care;
Disability/invalidity
coverage; Parental leave; Retirement provision; Stock
ownership; and Others.
Total hours devoted to training personnel within each
employee category
arrangements
incidents of forced or compulsory labor?
Is birth certificate, passport, identity card, work permit or
other original documents belonging to the worker retained
or kept for safety reasons by the organization neither upon
hiring nor during employment?
employer?
prevailing limits?
Does organization have presence of formal policies on
equal opportunities?
Ratio of basic salary of men to women by employee
category.
religion, political opinion, national extraction, or social
origin
Total number of incidents of discrimination during the
reporting period
48
N/A
As Boffin and its employees pay for the social insurance every
month, government will responsible for retirees.
Based on Chinese law.
All workers have the training courses once per month.
8 hours/month
8 hours per day and 40 hours per week.
The working time is from 08:30-17:30, with one-hour break at
noon from Monday to Friday. Employees are required to work
no more than 44 hours per week.
Overtime working is not permitted in Boffin Company.
No.
Yes
No
0
1
1
1
1
1
1
1
1
1
1
1
1
No
Yes
Yes
1
0
0
All employees are entitled to have parental leave in Boffin.
1
1
1
1
1
1
1
parental leave.
Security personnel
Health and Safety
Occupational safety and health
The number of employees by gender that took parental
leave and the number of employees who returned to work
after parental leave ended, by gender.
The percentage of security personnel who have received
formal training in the organization’s policies on, or specific
procedures for, human rights issues and their application to
security.
Social Benefit
0
0
N/A
Rates of injury in plant and rates of injuries in industry
sector
Formal agreements (either local or global) with trade
unions cover health and safety. (Yes/No) If yes, report the
extent to which various health and safety topics are covered
by local and global agreements signed by the organization.
prevention and risk control programs in place to assist
workforce members, their families, or community members
regarding serious diseases?
N/A
Does the organization have education/training program(s)
to assist work force members, their families or community
members?
Does the organization have counseling program(s) to assist
work force members, their families or community
members?
Does the organization have prevention/risk control
program(s) to assist work force members, their families or
49
1.
-1
-1
List and provide short description of social benefits
provided to the workers (eg. Health insurance, pension
fund, child care, education, accommodation etc.)
Social Benefit/Social Security
Employees have 90 days’ parental leave (30 days’ antenatal
leave and 60 days’ postpartum leave).
0.
0
0
No
No
0
0
1
1
0
-1
Yes.
Yes
1
1
Employees have 29 days’s tatutory holidays every year.
Formal staffs enjoy basic endowment insurance,
unemployment insurance and other social insurance according
to relevant regulations of the state. Staffs live up to their
personal evaluations can obtain a thirteenth salary as the bonus
in the end of year. Employees are given 7 days of marriage
leave, 90 days of paid maternity leave and 5 days of paid
paternity leave.
Yes, outstanding employees have opportunities to get funding
for training abroad.
No.
Employees have training before starting work in Boffin
Company.
1
1
-1
1
Social Security
community members?
Does the organization have treatment program(s) to assist
members?
Does the organization violate obligations to workers under
labor or social security laws and employment regulations?
No
-1
No
1
Consumer
Subcategories
Health & Safety
Inventory indicator
Quality of labels of health and
safety requirements
Number of consumer
complaints
Feedback Mechanism
Consumer Privacy
Internal management
Complaints
Inventory data
For development of product concept, whether the health
and safety impacts of products and services are assessed for
improvement.
For R&D, whether the health and safety impacts of
For manufacturing and production, whether the health and
improvement.
impacts of products and services are assessed for
improvement.
improvement.
For use and service, whether the health and safety impacts
of products and services are assessed for improvement.
For disposal, reuse or recycling, whether the health and
improvement.
The total number of incidents of non-compliance with the
health and safety of products and services
Strength of internal management system to protect
consumer privacy, in general
Number of consumer complaints related to breach of
privacy or loss of data within the last year
50
Result
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0
Yes. Customers can make complains through phone calls.
No
No
0
Score
1
1
1
1
1
1
1
1
1
1
-1
-1
1
Transparency
Product and service labeling
Certification
Number of complaints by regulatory bodies related to
breach of consumer privacy or loss of data within the last
year
product or site?
Does the organization have internal management systems
ensure that clear information is provided to consumers on
end-of-life options (if applicable)?
Annual incidents of non-compliance with regulatory
labeling requirements.
0
1
0
No
1
-1
No
-1
0
1
Society
Subcategories
Inventory indicator
Sustainability
Inventory data
No. of direct Jobs
development
armed conflicts
Corruption
Employment creation
Conflicts in region
Do the product and/or company contribute or mitigate
them? If yes, how does the product act to mitigate?
What kind of preventing and mitigating actions are
realized?
Mitigation
Does the product contribute to technology development? If
yes, how?
Corruption
Total number of incidents in which employees were
51
Result
No.
Environmental protection area.
Yes. Boffin gets many supports from local government, such
as free offices for two years, funding from the government and
etc.
8
The total investment of Boffin is 3 million RMB at present and
since the BOD online monitor is still in test, there are few
impacts on communities and local economic. However,
according to Boffin’s internal report, 200 job positions will be
offered when the product is produced. In the meantime, as the
BOD online monitor uses less electricity than its counterparts.
No
No
No.
Yes. Boffin is a high technology company and self-develops
the BOD online monitor, which is one of the newest
inventions in environmental industry.
No
0
Score
-1
1
1
1
1
1
0
0
1
-1
1
dismissed or disciplined for corruption
Are employees trained in organization's anti-corruption
policies and procedures?
No
-1
No
-1
Local Community
Subcategories
Inventory indicator
Safe & healthy and secure living
conditions
Identify the exposure of the
local community to operations
due to higher than average use
of/impact on shared resources
Community meeting
Senior management hired from
the local community at
significant locations of
operation.
Local employment
Employees/Workers hired from
the local community
Supplier selection from the
local community
Respect of indigenous rights
Inventory data
Use of hazardous substances that impact on the
environment and human health in general, and specifically
reproductive health
Does the local community near operations? Is it easily to
access?
Diversity of community stakeholder groups that engage
with the organization.
Number and quality of meetings with community
stakeholders.
Report whether the organization has a global policy or
common practices for granting preference to local residents
when hiring in significant locations of operation. If so,
report the proportion of senior management in significant
locations of operation from the local community. Use data
on full-time employees to calculate this percentage.
common practices for granting preference to local residents.
If so, report the proportion of employees/workers from the
local community. Use data on full-time employees to
calculate this percentage.
Indicate the factors that influence supplier selection (e.g.,
costs, environmental and social performances) in addition
to their geographic location.
52
Result
No negative impacts, on the contrary, products of Boffin are
beneficial for environment monitoring.
As an environment enterprise, Boffin never uses hazardous
substances.
Yes. It is easy to access.
The community stakeholder groups of Boffin includes:
employees, customers, suppliers and governments. These
groups connect with Boffin by different means.
Never.
Never.
Score
1
1
1
1
-1
-1
No.
-1
Yes. Except research staffs are from research institutions and
universities, most of other employees will be hired in the local
area. 100%.
1
Costs and suppliers’ reputations. Suppliers’ reputations can be
judged by other companies’ acknowledges within the industry.
-1
There is not exist indigenous people in the operation area.
0
Appendix 3— Inventory result of Universtar Company
Employee/Worker
Subcategories
Inventory indicator
Inventory data
Country
Does there have legislation for the freedom of association
in country?
Type of operations
Child Labor
incidents of child labor?
Staff salary
Minimum wage
Fair Salary
Short-term employee benefits
Wages/salaries
Short-term compensated absences (such as paid annual
leave and paid sick leave)
Profit-sharing and bonuses payable within twelve months
53
Result
Chinese labor laws fall short of international standards. There
is no real freedom of association, as only one “workers”
organization is recognized in law, the All China Federation of
Trade Unions (ACFTU). There are no comprehensive national
level regulations on collective bargaining procedures, but only
on collective contracts. However, a collective contract
established in line with the regulations is legally binding.
There have also been considerable efforts to set up a dispute
resolution system in the last decade.
Resource: http://survey.ituc-csi.org/China.html#
Employees have rights to exercise freedom of association and
collective bargaining on the basis of Chinese law. There has
the trade union in Universtar Company and all employees are
required to join the union without paying any fees, however,
no activities are held by the trade union at present.
0
The minimum age of employee in Universtar is 22. Right now
there does not have young workers in Universtar, but
Universtar admits to provide same working condition to all its
employees.
No.
Universtar does not and will not hire child labor at present and
in the future.
The average of staff salary in Universtar is 1500-2000RMB
per month for the new entry.
The pension plan of Universtar is based on the Law of the
People’s Republic of social insurance.
Resource:
http://www.gov.cn/flfg/2010-10/28/content_1732964.htm
The same for male and female.
1500-2000RMB/month for entry level.
The same as long-term employees.
Score
-1
-1
1
1
1
1
1
1
1
1
1
1
after the end of the period in which the employees render
the related service
Non-monetary benefits (such as medical care, housing, cars
and free or subsidized goods or services) for current
employees
Post-employment benefits
Other long-term employee
benefits
Working Hours
Arrangements
Forced Labor
Discrimination
Forced Labor
Equal opportunities
Anti-discrimination
Life insurance; Health care;
Disability/invalidity
coverage; Parental leave; Retirement provision; Stock
ownership; and Others.
Total hours devoted to training personnel within each
employee category
arrangements
incidents of forced or compulsory labor?
Is birth certificate, passport, identity card, work permit or
other original documents belonging to the worker retained
or kept for safety reasons by the organization neither upon
hiring nor during employment?
employer?
prevailing limits?
Does organization have presence of formal policies on
equal opportunities?
Ratio of basic salary of men to women by employee
category.
54
Since Universtar and its employees
insurance every month, government
retirees.
retirees.
retirees.
Based on Chinese law.
1
pay for the social
will responsible for
1
pay for the social
1
pay for the social
1
One time per month or per three weeks.
One time per month or per three weeks.
8 hours per day and 40 hours per week.
The working time is from 08:30-17:30, with one-hour break at
noon from Monday to Friday. Employees are required to work
no more than 44 hours per week.
Overtime working is not permitted in Universtar Company.
No.
Yes
No
1
1
1
1
1
1
1
1
1
No
Yes
Yes
1
0
1
1
1
1
1
religion, political opinion, national extraction, or social
origin
Total number of incidents of discrimination during the
reporting period
parental leave.
Security personnel
Health and Safety
Occupational safety and health
The number of employees by gender that took parental
leave and the number of employees who returned to work
after parental leave ended, by gender.
The percentage of security personnel who have received
formal training in the organization’s policies on, or specific
procedures for, human rights issues and their application to
security.
Rates of injury in plant and rates of injuries in industry
sector
Formal agreements (either local or global) with trade
unions cover health and safety. (Yes/No) If yes, report the
extent to which various health and safety topics are covered
by local and global agreements signed by the organization.
prevention and risk control programs in place to assist
workforce members, their families, or community members
regarding serious diseases?
List and provide short description of social benefits
provided to the workers (eg. Health insurance, pension
fund, child care, education, accommodation etc.)
Social Benefit/Social Security
Social Benefit
Does the organization have education/training program(s)
to assist work force members, their families or community
members?
Does the organization have counseling program(s) to assist
members?
55
0
Accounting to one staff in Univestar Company, females have
the rights to have parental leave, but males do not have
parental leave.
N/A.
0
0
1
-1
0
-1
-1
0
N/A
No.
N/A
No.
No.
-1
0
1
0
-1
-1
Yes
Yes
1
1
Employees have 29 days’ statutory holidays every year.
Formal staffs enjoy basic endowment insurance,
unemployment insurance and other social insurance according
to relevant regulations of the state. Staffs live up to their
personal evaluations can obtain a thirteenth salary as the bonus
in the end of year.
Yes. There are trainings every month for educating corporate
culture, management, marketing and etc.
No.
1
1
-1
Social Security
Does the organization have prevention/risk control
program(s) to assist work force members, their families or
community members?
Does the organization have treatment program(s) to assist
members?
Does the organization violate obligations to workers under
labor or social security laws and employment regulations?
No.
-1
No
-1
No
1
Consumer
Subcategories
Health & Safety
Inventory indicator
Quality of labels of health and
safety requirements
Number of consumer
complaints
Feedback Mechanism
Inventory data
For development of product concept, whether the health
and safety impacts of products and services are assessed for
improvement.
For R&D, whether the health and safety impacts of
For manufacturing and production, whether the health and
improvement.
impacts of products and services are assessed for
improvement.
improvement.
For use and service, whether the health and safety impacts
of products and services are assessed for improvement.
For disposal, reuse or recycling, whether the health and
improvement.
The total number of incidents of non-compliance with the
health and safety of products and services
56
Result
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0
Yes. Customers can complain through phone calls. Universtar
have nice after-service mechanisms that engineers are sent to
inspect and fix products regularly.
N/A
Score
1
1
1
1
1
1
1
1
1
1
0
Internal management
Consumer Privacy
Transparency
Complaints
Product and service labeling
Certification
Strength of internal management system to protect
consumer privacy, in general
Number of consumer complaints related to breach of
privacy or loss of data within the last year
Number of complaints by regulatory bodies related to
breach of consumer privacy or loss of data within the last
year
product or site?
Does the organization have internal management systems
ensure that clear information is provided to consumers on
end-of-life options (if applicable)?
Annual incidents of non-compliance with regulatory
labeling requirements.
No
-1
No
1
No
1
No
Yes.
-1
1
No
-1
0
1
Society
Subcategories
development
Inventory indicator
Sustainability
Employment creation
Conflicts in region
armed conflicts
Mitigation
Inventory data
No. of direct Jobs
Do the product and/or company contribute or mitigate
them? If yes, how does the product act to mitigate?
What kind of preventing and mitigating actions are
realized?
Does the product contribute to technology development? If
yes, how?
57
Result
No
Environmental protection area.
Research development fund.
1500
Universtar is the creditable company in Guangdong province.
The total investment of Universtar is 400,000,000 RMB.
No
No
No.
Yes. Universtar establish three research and development
centers in Shenzhen, Zhejiang and Anhui. It is the technical
support unit of Guangdong Research and Development Center
of Environmental Monitoring and Treatment, Shenzhen
Research and Development Center of Environmental
Monitoring Engineering Technology, and Exemplary Research
and Development Base of Production, Education and Research
of Environmental Monitoring and Treatment of Education
Score
-1
1
1
1
1
1
0
0
1
Department of Guangdong Province.
Corruption
Corruption
Total number of incidents in which employees were
dismissed or disciplined for corruption
Are employees trained in organization's anti-corruption
policies and procedures?
No
-1
0
1
No
-1
N/A
0
Local Community
Subcategories
Inventory indicator
Safe & healthy and secure living
conditions
Identify the exposure of the
local community to operations
due to higher than average use
of/impact on shared resources
Community meeting
Senior management hired from
the local community at
significant locations of
operation.
Local employment
Employees/Workers hired from
the local community
Supplier selection from the
local community
Inventory data
Use ofhazardoussubstances that impacton the environment
and human health in general, and specifically reproductive
health
Does the local community near operations? Is it easily to
access?
Diversity of community stakeholder groups that engage
with the organization.
Number and quality of meetings with community
stakeholders.
Result
No negative impacts, on the contrary, products of Universtar
are beneficial for environment monitoring.
As an environment enterprise, Universtar never uses
hazardous substances.
Yes. It is easy to access.
The community stakeholder groups of Universtar includes:
employees, customers, suppliers and governments. These
groups connect with Universtar by different means.
Never.
Never.
common practices for granting preference to local residents
when hiring in significant locations of operation. If so,
report the proportion of senior management in significant
locations of operation from the local community. Use data
on full-time employees to calculate this percentage.
No.
common practices for granting preference to local
residents.If so, report the proportion of employees/workers
from the local community. Use data on full-time employees
to calculate this percentage.
Indicatethe factors that influence supplier selection (e.g.,
costs, environmental and social performances) in addition
No.
58
Score
1
1
1
1
-1
-1
-1
-1
Costs and suppliers’ reputations. Suppliers’ reputations can be
judged by other companies’ acknowledges within the industry.
-1
to their geographic location.
59
There is not exist indigenous people in the operation area.
0
Appendix 4— Results of Impact Categories
Impact categories
Subcategories
Designing
Human rights
Freedom of Association and Collective Bargaining
-0.2
(0.4)
Child Labor
0.2
Forced Labor
0.2
Equal opportunities/Discrimination
0.2
0
Working conditions
Fair Salary
0.104
(0.47)
Working Hours
0.25
Health and Safety
-0.03
Social Benefits/Social Security
0.15
Health and safety
Health & Safety
0.33
(0.67)
Consumer Privacy
0
Safe & healthy living conditions
0.33
Governance
Feedback Mechanism
0
(-0.125)
Transparency
0
0
Corruption
-0.125
Socio-economic
Public commitments to sustainability issues
0.056
repercussions
Contribution to economic development
0.17
(0.36)
Prevention & mitigation of armed conflicts
0.08
0.17
-0.056
Local employment
-0.056
60
Impact categories
Subcategories
Manufacturer
Human rights
-0.2
(0.325)
Child Labor
0.2
Forced Labor
0.2
Equal opportunities/Discrimination
0.125
0
Working conditions
Fair Salary
0.25
(0.49)
Working Hours
0.25
Health and Safety
-0.107
0.1
Health and safety
Health & Safety
0.33
(0.67)
Consumer Privacy
0
0.33
Governance
Feedback Mechanism
0.125
(0.0625)
Transparency
0
0
Corruption
-0.0625
Socio-economic
0.056
repercussions
0.17
(0.25)
0.08
0.17
-0.056
Local employment
-0.17
61
Appendix 5— Results of Stakeholder Categories
Stakeholder
Subcategories
Boffin
Worker/
-0.125
Employee
Child Labor
0.125
(0.132)
Fair Salary
0.094
Working Hours
0.125
Forced Labor
0.125
Equal Opportunities/Discrimination
0.125
Health and Safety
-0.015
0.075
Consumer
Health & Safety
0.2
(0.05)
Feedback Mechanism
0
Consumer Privacy
0
Transparency
0
0
Society
0.067
(0.116)
0.2
0.1
0.2
Corruption
-0.1
Local
0.25
Community
-0.083
(0.021)
Local employment
-0.083
0
categories
62
Stakeholder
Subcategories
Universtar
Worker/
-0.125
Employee
Child Labor
0.125
(0.112)
Fair Salary
0.125
Working Hours
0.125
Forced Labor
0.125
Equal Opportunities/Discrimination
0.078
Health and Safety
-0.054
0.05
Consumer
Health & Safety
0.2
(0.075)
Feedback Mechanism
0.1
Consumer Privacy
0
Transparency
0
0
Society
0.067
(0.129)
0.2
0.1
0.2
Corruption
-0.05
Local
0.25
Community
-0.083
(-0.021)
Local employment
-0.25
0
categories

Assessing CSR and Applying Social Life Cycle Assessment: A case

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